Springfield Properties acquires Tulloch Homes for £56.4m

Springfield Properties has announced the conditional acquisition of Scottish housebuilder Tulloch Homes for a net consideration of £56.4m.


The purchase is set to enhance Springfield’s foothold in the Scottish Highlands in and around Inverness.

It is also expected to increase earnings from the current financial year and significantly improve earnings from first full year of ownership, as well as strengthen the company’s private housing land bank and create opportunity for affordable housing.

This is Springfield’s third acquisition since joining the market in 2017.

The Scottish housebuilder also announced a proposed placing of new ordinary shares at a price of 140 pence per share to raise gross proceeds of £22m.

This is being conducted via an accelerated bookbuild, with the net proceeds to be used to repay a portion of a bridging finance facility with Bank of Scotland that will partially fund the initial cash consideration for the acquisition.

Three term loans totalling £43.2m were established under the company’s facilities agreement for the purposes of financing the acquisition. 

The bridging finance facilities will be repaid using the net cash of Tulloch Homes on completion and the proceeds of the placing.

Innes Smith, CEO at Springfield Properties, said: “Tulloch Homes has an excellent reputation for building high-quality homes in the Scottish Highlands in and around Inverness. 

“This is an area of high demand where we have been organically building a presence in recent years. 

“As a result, it will significantly strengthen our foothold in an area of strategic importance and accelerate our growth, being earnings enhancing from the current year. 

“We welcome all of the Tulloch Homes employees to the Springfield group and we look forward to working together to continue to grow our business.”

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