Scottish housebuilder eyes expected demand from thousands of workers needed in region
Springfield Properties has agreed to sell nearly 2,500 plots of land to Barratt Redrow for £64.2m.
The Scottish housebuilder said the proceeds from the sale will be used to more quickly pay down its outstanding bank debt, which stood at £62.9m as of 30 November.
It said the move will also capitalise on the “substantial need for new housing” expected in the north of Scotland due to anticipated growth in green infrastructure.
The housebuilder said Scottish and Southern Electricity Networks is investing £31bn into upgrading the electricity network in the region and the project will require around 5,000 workers in 2027.
>> See also: Top 150 Contractors & Housebuilders 2024: Top 50 Housebuilders
The Inverness and Cromarty Firth Green Freeport is also expected to create more than 10,000 jobs locally with new investment of over £3bn.
Springfield said its new projects and land purchasing will be focused on the north of Scotland region “where greater growth exists”, as opposed to central Scotland.
The announcement came as Springfield published its half-year results for the six months to 30 November, showing its pre-tax profit has nearly trebled from £1.2m to £3.5m year-on-year.
The increase was despite turnover dropping 13%, from £121.7m to £105.6m, as it built 361 homes compared to 432 in the same period last year.
The group reduced its net bank date from £93.4m to £62.9m and said reducing debt further “remains an area of focus”.
No comments yet