REG - Springfield Props. - Collaboration with Barratt for Durieshill

Springfield PropertiesAnnouncement

03/06/2024 07:00

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RNS Number : 8123Q  Springfield Properties PLC  03 June 2024

3 June 2024

 

Springfield Properties plc

("Springfield", the "Company", the "Group" or the "Springfield Group")

 

Springfield enters Strategic Collaboration with Barratt for Durieshill

Landmark agreement set to accelerate building of infrastructure and homes in
the new village

 

Springfield Properties plc (AIM: SPR), a leading housebuilder in Scotland
focused on delivering private and affordable housing, is delighted to announce
that it has entered into a strategic collaboration agreement (the "Agreement")
with BDW Trading Limited ("Barratt"), the principal operating subsidiary of
Barratt Developments PLC, for the development of the Group's Durieshill site,
creating a new village near Stirling.

 

With planning in place for 3,000 private and affordable homes alongside new
schools, local shops and other business opportunities, community woodlands and
greenspace, Durieshill involves the creation of a new standalone sustainable
village near Stirling and within commuting distance of Edinburgh and Glasgow.
Spanning nearly 600 acres, Durieshill is the largest detailed planning
application for housing development to be approved in Scotland to date.

 

Under the terms of the Agreement, Barratt will, in consideration for half of
the land at Durieshill, provide and fund the infrastructure development for
the entire site, expected to be over the next five years, and has made a cash
payment of £10m to Springfield. The provision of site infrastructure by
Barratt will significantly accelerate the development of the site, whilst
eliminating Springfield's requirement to tie up capital for the next five
years.

 

Springfield has received £10m from the profitable sale of the initial 34
acres of land. The remaining land will be exchanged for the provision of site
infrastructure over the coming years as development milestones are achieved.
The cash proceeds from the profitable land sale will contribute to reducing
Springfield's debt. The Group expects to report bank debt of c. £41m as at 31
May 2024, ahead of its stated target of £55m.

 

Innes Smith, CEO of Springfield Properties, said: "We are delighted to
collaborate with Barratt on this exciting project at Durieshill. Our shared
values and goals in constructing quality homes and fostering sustainable
communities, combined with Barratt's five-star reputation, will offer
customers increased choice and accelerate delivery in this premier
development. We are eager to work with Barratt to establish a thriving village
at Durieshill.

 

"Due to the substantial size of this site, this partnership marks a
significant milestone for Springfield, emphasising the worth of our extensive
land holdings with planning permission in sought after locations throughout
Scotland. The infrastructure support provided by Barratt in this collaboration
will enhance Springfield's growth prospects in the medium term, minimise risks
and optimise our return on capital."

 

Enquiries

 

 Springfield Properties
 Sandy Adam, Chairman                                          +44 1343 552550

 Innes Smith, Chief Executive Officer

 Iain Logan, Chief Financial Officer

 Singer Capital Markets
 Shaun Dobson, James Moat, Oliver Platts (Investment Banking)  +44 20 7496 3000

 Gracechurch Group
 Harry Chathli, Claire Norbury, Henry Gamble                   +44 20 4582 3500

 

Analyst Research

 

Equity Development and Progressive Equity produce freely available research on
Springfield Properties plc, including financial forecasts. This is available
to view and download here:

https://www.thespringfieldgroup.co.uk/news/updates-and-analyst-reports
(https://www.thespringfieldgroup.co.uk/news/updates-and-analyst-reports)

 

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