Builder eyes £25m listing to underpin Tayside sites

Springfield chairman Sandy Adam (centre) at the ground cutting ceremony for Bertha Park last month.

The Scottish housebuilder which is currently developing new villages on the outskirts of Dundee and Perth has announced plans to float on the stock exchange.

Moray-based Springfield Properties said it hoped to raise up to £25 million by listing on the Alternative Investment Market.

Last month construction started on the 3,000-home Bertha Park development in Perth, which is the city’s biggest expansion in a generation.

Work is due to take place for the next 30 years on the 800-acre Inveralmond site, creating around 450 construction jobs.

Meanwhile the company is also building 595 homes near Dykes of Gray Road in Dundee as part of the Western Gateway development.

Announcing the plans Springfield executive chairman Sandy Adam said listing the company would help raise funds to invest in the infrastructure of five villages it was currently creating.

As well as Dundee and Perth, the company is also developing major sites in Edinburgh, Stirling and Elgin.

All five sites have a gross development value of £1.5 billion and will incorporate 10,000 homes on completion. They will also have retail facilities, amenities and local schools.

The development of these villages is expected to involve significant net cash-outflows in relation to land purchases, remediation works and infrastructure of between £8m to £12m per site.

Mr Adam said: “Throughout our history, Springfield’s strategies have achieved our aim of steady growth, doubling the company in size every five years.

“Our turnover exceeded £100m for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.

“Raising these funds is part of our strategy to secure ongoing growth at the same rate.

“The new funding will enable us to invest in the infrastructure of five new villages in Scotland and in existing sites, accelerating the delivery of new homes, private and affordable, in new communities.

“Scotland needs more homes countrywide and Springfield is poised to play a significant part in delivering these homes for private individuals and across all tenures in the affordable and social housing sector.”

Springfield, which could be valued at up to £65m, would become the latest Scottish firm to join the AIM market following Glasgow-based clothing group Quiz and Edinburgh accountancy software business FreeAgent.