Springfield in £49million expansion
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A MORAY firm is now one of Scotland's largest independent house builders following a £49 million acquisition.
Springfield Properties Plc has concluded a deal with Redrow plc to take over its Scottish operations.
The deal could add £200 million to Springfield's annual turnover.
The Elgin-based developer will take over the Scottish head office and sites owned by Redrow as part of ambitious plans to expand its operations throughout Scotland.
Redrow’s Scottish business is being sold for a total consideration of £49m, comprising £5m cash paid on completion and deferred cash consideration of £44m, to be paid as developments are sold over the next three years.
The deal will be a key platform of Springfield’s strategy to grow from its current position to a company with a £100m per annum turnover within the next five years.
Springfield will work on Redrow’s eight existing sites in Scotland at Anniesland, Braehead, Dalkeith, Dunfermline, Inverkip, Kilwinning, Lenzie, and Motherwell - which have the potential for over 800 new homes.
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.
This deal now gives Springfield a total of 30 sites across Scotland and a development pipeline of 500 new homes per year.
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 transfer to Springfield.
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.
"When Redrow announced its intention to sell its Scottish business, we saw a major opportunity to consolidate this growth. This deal is an exciting move for Springfield, giving us great new locations and the platform to provide our quality homes for customers throughout Scotland."
In March last year Springfield appointed Sandy Anderson as managing director. He was formerly regional chairman of Bett Homes, which he helped grow from an annual output of 200 to 1500 homes.
The Redrow deal comes hard on the heels of Springfield being chosen as the development partner for the first phase of An Camas Mòr, the innovative new community planned for the Cairngorms National Park.
Springfield will join the An Camas Mòr consortium, led by Rothiemurchus Estate, with responsibility for delivering the initial phase of this proposed new community comprising 80 affordable homes, 95 homes for private sale, 25 self build plots and community services.
Originally 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 over 2000 homes since 1998, delivering high-quality private and social housing across the north of Scotland. The company recorded turnover of £39m in 2011.
In 2005, Springfield was recognised by the Virgin Atlantic Sunday Times Fast Track list as Scotland’s fastest growing, profitable, private company.
Last year Springfield secured a loan facility from HSBC to underpin its drive into the central belt.
