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Springfield Properties PLC on Monday announced a strategic collaboration with BDW Trading Ltd, the principle operating subsidiary of housebuilder Barratt Developments PLC. The Elgin, Scotland-based housebuilder said the two firms will partner to develop the Durieshill site belonging to Springfield in order to create a new village near Stirling. Spanning 600 acres, space has been allocated for 3,000 planned private and affordable homes, alongside amenities including new schools, local shops, woodlands, green space, and other business opportunities, Springfield said. Under the agreement terms, in consideration for half of the land at Durieshill, Barratt will provide and fund infrastructure development for the entire site over the next five years. Barratt also has made cash payment of £10 million to Springfield for 34 acres, with the remaining land exchanged for infrastructure works as development milestones are reach. The collaboration with Leicestershire-based Barratt is expected to accelerate the development timeline whilst reducing Springfield’s tied up capital. Proceeds from land sales are expected to contribute towards reducing Springfield’s debt. Springfield expects to report bank debt of approximately £41 million as at May 31, ahead of the stated target of £55 million. Chief Executive Officer Innes Smith 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.’ This agreement follows an announcement made last week that Springfield signed a £6.3 million contract with the Wheatley Housing Group Ltd to deliver affordable homes with construction commencing October 2025. Springfield shares were up 4.3% to 98.05 pence each in London on Monday morning, Barratt up 0.9% to 507.80 each. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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