Scotland’s Springfield Properties is buying Mactaggart & Mickel’s housebuilding business for £46.5m.
Scotland’s only listed housebuilder will pay £10.5m in cash for the century-old Central Belt builder, with a deferred cash consideration of £35.8m paid over the next five years as homes are sold.
The acquisition will be funded from Springfield’s internal resources and existing debt facilities with Bank of Scotland.
The deal will hand Springfield the brand name Mactaggart & Mickel, a pipeline with a GDV of £230m and six live sites with a fair value of approximately £15m.
Vitally for Springfield, it will also give the housebuilder ownership of Timber Systems, a timber frame factory near Glasgow. The group already constructs 90% of its homes from timber kits and the addition of a second timber frame factory will secure kit supply and increase capacity for future growth while further reducing its carbon footprint.
Alongside this, Springfield will be able to buy sites from Mactaggart & Mickel’s remaining landbank of approximately 2,300 acres across Scotland.
Springfield CEO Innes Smith said: “We are very pleased to welcome Mactaggart & Mickel’s Scottish housebuilding business into the Springfield Group. As well as bringing another premium brand into the group, this acquisition gives us land, with planning permission, in areas of significant demand. The structure of the acquisition – with the majority of the payment to be made as homes are completed – de-risks the deal and creates an effective and efficient means of acquiring land.”
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