Springfield partners with Barratt for 3,000-home project

AIM-listed Scottish housebuilder Springfield Properties has teamed up with Barratt Developments to bring forward a new village development near Stirling. Springfield’s Durieshill site has planning in place for 3,000 private and affordable homes alongside new schools, local shops and other business opportunities, community woodlands and green space. The site spans nearly 600 acres and is one of the largest detailed planning applications 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, while eliminating Springfield’s requirement to tie up capital for the next five years. Springfield said it had received £10m from the sale of the initial 34 acres of land and that the remaining land would be exchanged for the provision of site infrastructure over the coming years as development milestones are achieved. The cash proceeds from the land sale will contribute to reducing Springfield’s debt. The group expects to report bank debt of £41m as at 31 May 2024, ahead of its stated target of £55m. Innes Smith, chief executive at Springfield Properties, said: “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.” Image from Springfield Properties