Scottish housebuilder Springfield heads for AIM
IPO funds will be used to build ‘villages’ across central and northern Scotland
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)