Redrow sells Scottish arm for £49m

HOUSEBUILDER Redrow has announced that it has completed the previously-announced sale of its Scottish business to privately-owned Springfield Properties for £49m.

Springfield Properties, which is based in Elgin, is paying an initial cash sum of £5m with the remaining £44m being paid as deferred consideration as the acquired developments are completed and sold over the next three years.

Redrow’s operation in Scotland consists of 8 sites with planning permission. These were valued on the company’s books at the same price for which the business has been sold. In the year to June 30, 2010, Redrow’s Scottish arm posted a pre-tax loss of £1.7m on sales of £31m.

Deeside-based Redrow said the sale proceeds would be used to increase investment in its other operations, particularly in London and the South East.

Chairman Steve Morgan said: “The board is pleased to have secured a buyer for our operation in Scotland following a competitive process that we outlined in our April statement.

“Springfield is a successful Scottish house builder and the transaction will substantially increase its presence in the central belt.

“The transaction will also provide our customers and employees with a good home for the future, whilst enabling Redrow to increase its investment in land in London and the South East.”