Scottish house­builder Spring­field heads for AIM

IPO funds will be used to build ‘vil­lages’ across cen­tral and north­ern Scot­land

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Scottish house­builder Spring­field Prop­er­ties is plan­ning to join AIM and raise up to £25m to fund the next step in its growth plan. Ex­ec­u­tive chair­man Sandy Adam took over his grand­fa­ther’s mar­ket gar­den oper­a­tion in the late 1980s and switched the fo­cus to house­build­ing.

The group now builds a mix­ture of af­ford­able homes and houses for pri­vate sale and points to ‘a track record of prof­itabil­ity through­out the Scottish hous­ing mar­ket cy­cle’.

To grow its pri­vate hous­ing arm, it plans to build five new ‘vil­lages’ at a cost of be­tween £8m and £12m apiece across north and cen­tral Scot­land.

The com­pany has ei­ther se­cured land ‘or en­tered into other ar­range­ments’ on the sites which will in­cor­po­rate 10,000 homes and have a gross de­vel­op­ment value of £1.5bn.

The vil­lages, lo­cated near Ed­in­burgh, Stir­ling, Dundee, Elgin and Perth, are set to have shops, other ameni­ties and lo­cal schools.

The com­pany ben­e­fits from the le­gal frame­work for hous­ing trans­ac­tions in Scot­land which of­ten al­lows Spring­field to se­cure a legally bind­ing sale be­fore com­menc­ing build­ing.

The com­pany also hopes to ben­e­fit po­lit­i­cal sup­port with the Scottish gov­ern­ment out­lin­ing an in­ten­tion to build 50,000 af­ford­able homes dur­ing the life of the cur­rent par­lia­ment.

On this ba­sis Spring­field be­lieves it could dou­ble rev­enue from its af­ford­able hous­ing divi­sion by 2019 from the £23.2m gen­er­ated in the year to 31 May 2017. (TS)

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