Springfield Properties to dispose of 11.2 acres

19th Feb 2024 10:23

(Sharecast News) - Scottish housebuilder Springfield Properties has agreed to dispose of approximately 11.2 acres of land.

Springfield Properties said on Monday that the land, which equates to 85 plots, was fully owned by the group, meaning that the cash inflow to the firm will be £8.7m.

The AIM-listed group expects to receive £6.5m in the current financial year and the remainder in the following year. The proceeds from the sale will support Spriingfield's ongoing target to reduce debt.

Chief executive Innes Smith said: "We are pleased to have agreed another profitable land sale, which brings the total since October 2023 to over £18.0m. With one of the largest, high-quality land banks in Scotland, these sales are an attractive way of monetising our land bank without impacting our development pipeline. We are in advanced negotiation regarding further land sales, which remains a key element of our strategy to reduce our bank debt."

As of 1020 GMT, Springfield shares were up 1.96% at 78.0p.

Reporting by Iain Gilbert at Sharecast.com