Springfield Properties agrees milestone £64m deal to tap into Scotland’s green energy jobs boom

The Scottish firm has signed an agreement with BDW Trading, the main operating subsidiary of Barratt Redrow, for the profitable sale of 2,480 plots of undeveloped land with planning consent across six sites. Proceeds from the sale will be received over four years and will be used to pay down debt and to capitalise on the “significant growth opportunities emerging in the north of Scotland”.

The plots and possible sale of additional future land holdings are located across central Scotland, with Springfield, which was established in Moray and floated on the stock market in 2017, looking to capitalise on opportunities further north. It noted that this was being driven by UK government-financed green infrastructure development in the area.

Scottish and Southern Electricity Networks is investing billions upgrading the electricity network in the region and the project will require some 5,000 workers at its peak in 2027. Meanwhile, Cromarty Firth Green Freeport is expected to create more than 10,000 jobs locally with new investment in excess of £3 billion.

Innes Smith, chief executive of Springfield Properties, said: “This profitable land sale will enable us to realise the value of our assets, accelerate our plans to remove bank debt and focus on the significant opportunity in the north of Scotland where we are uniquely positioned to excel.

“New housing is required to cater for the thousands of workers needed to deliver the substantial green infrastructure development coming to the region and the ongoing population growth as a result of the economic stimulus these projects will bring.

“With significant land holdings across the Highlands and Moray and an established presence, we are excellently positioned to capitalise on this opportunity. In addition, we continue to have a large high quality land bank, with this deal demonstrating the long-term value of that asset.”

As a result of the major land sale, the group expects to report profit for the full year “significantly ahead of market expectations”.

Releasing interim results at the same time as news of the land sale, Springfield said total revenue had fallen 13 per cent year on year to £105.6m. However, adjusted profit before tax jumped 90 per cent to £3.8m.

The group said its private housing reservation rate had reduced from mid-December “reflecting the subdued economy”, but noted that it was currently experiencing “signs of increased confidence” following recent interest rate cuts. Since the Scottish Budget in December, affordable housing providers’ confidence is said to have improved and two new contracts have been signed that will commence in the current year.

Smith added: “The housing market continues to be influenced by the wider economy and subdued confidence resulted in a dip in reservation rates from mid-December. However, we are currently seeing an increase in visitor levels, bolstered by the reduction in interest rates earlier this month, giving us optimism that reservation rates will recover in the near term.”

Shares in Springfield pushed sharply higher in morning trade.