Springfield Properties buys Redrow's Scottish business

Springfield Properties Plc has bought Redrow's Scottish operations in a £49-million deal, part of ambitious plans to expand its operations throughout Scotland.

Redrow's Scottish business is being sold for a total consideration of £49 million, comprising £5 million cash paid on completion and a deferred cash consideration of £44 million to be paid as developments are sold over the next three years. The deal is a key platform of Springfield's growth strategy and establishes the company as one of Scotland's largest independent housebuilders.

Under the deal, Springfield will work out Redrow's eight existing sites in Scotland at Anniesland, Braehead, Dalkeith, Dunfermline, Inverkip, Kilwinning, Lenzie, and Motherwell, which have the potential for more than 800 new homes. The deal means Springfield will have a housebuilding business with 30 sites across Scotland and a development pipeline of around 500 Scottish new homes per year; the company had already begun its strategic expansion into the central belt prior to the Redrow move, securing new sites in Fife, West Lothian, Edinburgh, Perthshire and Aberdeenshire and an office base in Stirling.

It is anticipated that Springfield will establish its Central Scotland operation at Redrow's Larbert office while retaining its Elgin office as the company headquarters. Redrow currently employs around 60 people in Scotland whose positions will be covered by TUPE (Transfer of Undertakings Protection of Employment) regulations.

Sandy Adam, chairman of Springfield Properties, said: "Over the last few years, we have been able to carefully manage our business and steer it through the difficult economic situation with the aim of expanding operations throughout Scotland when market conditions were right.

"Last year we began that process by assembling new sites and strengthening our senior management team. Prior to this deal we have added 1,500 development sites to our portfolio in 2011 and, post the deal, we're still in the market for land and sites.

"When Redrow announced its intention to sell its Scottish business, we saw a major opportunity to consolidate this growth. This deal is an exciting one for Springfield, giving us great new locations and the platform to provide our quality homes for customers throughout Scotland. Redrow's focus on design and craftsmanship sits well with our own emphasis on delivering quality and value."

Established in Elgin in 1956, Springfield Properties is a family-led company which began to increasingly focus on property development in the mid 1990s. Under the leadership of Sandy Adam, grandson of the founder of Springfield, the company has built more than 2,000 homes since 1998, delivering private and affordable housing across the north of Scotland. The company recorded turnover of £39 million in 2011 and was recently chosen as the development partner for the first phase of An Camas Mòr, the innovative new community planned for the Cairngorms National Park.