Scottish housebuilder Springfield Properties has acquired Livingston-based peer Walker Group in a £31 mln (€35 mln) deal.
Springfield, which constructs private and affordable housing, has purchased the entire issued share capital of Walker, a developer focused on private housing in Edinburgh's commuter belt.
The acquisition is to be funded from Springfield’s existing cash balances and borrowing facilities with Bank of Scotland.
Walker’s developments generally comprise between 50 and 200 homes and the company also has the capability to deliver larger, multi-phased schemes, Springfield said. Walker is currently developing five active sites with a gross development value (GDV) of £100 mln and has five further sites in the pipeline with a GDV of over £300 mln.
The acquisition is in line with Springfield’s stated strategy of expanding its land bank and sales presence. Walker has a complementary land bank and sales presence, according to the purchaser, complementing Springfield's acquisition last year of Dawn Homes, a firm which focuses on Glasgow's commuter belt.
Walker does not currently build affordable housing, but development of its current land bank will require at least 346 affordable homes to be built, representing an opportunity for Springfield’s affordable housing division, the firm added.
The group will retain Walker’s premises in Livingston, all of the company’s 50 staff and the Walker brand. Peter Matthews, Springfield’s managing director for Central Scotland (private housing), will take over the responsibility of running the Walker business.
Following the acquisition, the group will operate on a total of 43 active sites.