Springfield Properties said that the net consideration of the acquisition was up to £31m, which will be funded from Springfield’s existing cash balances and borrowing facilities with Bank of Scotland.
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Springfield Properties has paid an initial net consideration of £21m in cash, with the remaining consideration of up to £10m payable as follows:
• £4m on receipt of planning consent at a site at Carlaverock, Tranent, to be satisfied wholly in cash
• £2m on receipt of detailed planning consent on all of the sites at Carlaverock, Tranent, to be satisfied wholly in cash
• approximately £4m (subject to finalisation of accounts) in general deferred consideration, payable in equal amounts on the first and second anniversary of the completion of the acquisition. Springfield has the option to satisfy this either in cash or shares in Springfield Properties PLC.
Springfield Properties will also acquire £41.4m of cash in Walker as part of the gross consideration of £72.4m.
Sandy Adam, executive chairman at Springfield (pictured above, left), said that it was very pleased to have completed this acquisition and welcomed Walker Group’s employees and customers to Springfield.
“Walker Group has a reputation for building excellent homes in great locations.
“The ethos among employees and the quality and location of the land bank are a great fit for Springfield.
“The acquisition has enabled us to diversify our land bank with sites at various stages of planning and development in east-central Scotland, where we have been looking to strengthen our foothold.
“We are pleased to have efficiently delivered a large proportion of our land-buying plans for the wider Edinburgh area, adding 10 sites to our land bank in one deal rather than with multiple individual deals.”
Also pictured: Bruce Walker, former managing director and majority shareholder at Walker Group, and Innes Smith, CEO at Springfield Properties.