1st Feb 2019 09:22
LONDON (Alliance News) - Springfield Properties PLC on Friday said it completed the acquisition of housebuilder Walker Holdings Scotland Ltd for up to GBP31.0 million.
The AIM-listed company said net consideration of the acquisition will be funded from its existing cash balances and borrowing facilities with Bank of Scotland PLC.
Under the terms, Springfield has paid an initial net consideration of GBP21.0 million in cash.
Further consideration of GBP4.0 million will be paid on receipt of planning consent at a site at Carlaverock, Scotland. Another GBP2.0 million will be paid on receipt of detailed planning consent on all of the sites at Carlaverock and GBP4.0 million payable in equal amounts on the first and second anniversary of the completion of the acquisition.
Walker is primarily targeting the two to five bedroom private home market in desirable locations within the Edinburgh commuter belt. It is currently developing five active sites with a gross development value of GBP100 million and has five further sites in the pipeline with a gross development value of over GBP300 million.
Housebuilder Springfield said it expects the addition of Walker to expand its land bank and sales presence in Edinburgh, with the acquisition to be earnings enhancing by low to double-digit in its current financial year, which will end on May 31.
"The acquisition has enabled us to diversify our land bank with sites at various stages of planning and development in East Central Scotland, where we have been looking to strengthen our foothold," said Springfield Executive Chair Sandy Adam.
"This bulk addition to our land bank also gives us very good visibility in our three-year projections," added Springfield Chief Executive Innes Smith.
Springfield shares were trading 5.7% higher on Friday at 124.25 pence a share.
Related Shares:
Springfield Pr.