Development firm snapped up by listed property group
A Castleford-headquartered land-led development firm has been acquired by listed property group, Galliford Try.
Strategic Team Group, which employs a total of 120 staff and reported annual revenues of £61.8m in the year to September 2018, currently has 23 live sites. The firm also has an office in Dukinfield, Cheshire, and last year delivered 500 new homes across the north.
Galliford Try said the purchase supported Partnerships’ ambitious growth strategy, targeting growth in key regions around the country to increase the supply of new homes.
The management team and staff at Strategic Team Group will remain in place, working within Partnerships to accelerate both business’ growth plans. The company will begin to trade as Galliford Try Partnerships Yorkshire from 1 July.
Stephen Teagle, Chief Executive of Galliford Try Partnerships, said: “We are really excited to have reached agreement with Strategic Team Group, which is a great fit for our growing business. It will enable us to expand our regeneration offering and help accelerate delivery in Yorkshire and the North West.
“As we grow, we will continue to offer exciting employment opportunities and bring together the skills across the business to deliver high quality developments. We look forward to working with new and existing clients to bring forward the supply of more homes.”
Andy Watson, Managing Director of Strategic Team Group, added: “Galliford Try Partnerships is an excellent fit for STG and we believe the deal will help to accelerate growth in areas where we see real opportunity for housing supply, helping to deliver development objectives for clients.”
In 2016, Galliford Try Partnerships led the successful acquisition of Drew Smith Limited, based near Southampton, to create a Southern region to the business.
In January, Strategic Team Group published its annual results for the year ending 30 September 2018, which it said it had also delivered £2m EBITDA, representing a 3% return on sales of £63m. It said that 78% of its revenue had been achieved on the back of negotiated deals and land-led developments rather than open tenders.
Its cash at bank stood at more than £2.5m, which it said was as a result of strong operating cashflows. It reported an end of year order book of £87m, with over 90% of 2018/19 turnover already secured and a pipeline of land and plots at its highest ever level.
