Sale of land for £5.2 million

Springfield Properties plc (AIM: SPR), a leading housebuilder in Scotland focused on delivering private and affordable housing, is pleased to announce that it has signed a binding agreement for the sale of approximately 9.5 acres of land for £5.2m. The land, which equates to 92 plots, is fully owned by the Group, such that the cash inflow to the Group will be £5.2m.

The Group will receive £0.5m in the coming days with the remaining £4.7m paid upon completion, which is expected to occur in March 2024. Following the receipt of the £0.5m, the agreement becomes unconditional in all respects. The proceeds from the sale will support the Group in its target to reduce Group debt.

Innes Smith, CEO of Springfield Properties, said: "This profitable land sale will help us to reduce our debt position, which, as we said at the time of our results, is very much our focus. With our large land bank with planning in place, we have the ability to generate cash from the sale of land without any impact on our development pipeline for the coming years. We continue to be in discussions with other housebuilders and affordable housing providers about a number of our sites, which we hope to complete in the near term. We believe there will be significant pent-up demand coming through in the land market and we are excellently-positioned to benefit from this."