Shares of Elgin-based housebuilder Springfield Properties rose 8% after it said it completed the acquisition of Glasgow-based housebuilder Dawn Homes for up to £20.1 million.

Springfield also announced it conditionally raised £15 million through the placing of 12.5 milllion new shares with new and existing investors at 120p per placing share.

Springfield shares rose 8% to 134p to give the firm a current stock market value of around £110 million, according to Bloomberg data.

“The net proceeds will be used to partially re-finance the initial cash consideration paid in respect of the acquisition,” said Springfield.

Springfield will pay an initial £17.6 million and an additional £2.5 million may be payable contingent on Springfield receiving zoning on Dawn Homes’ site at Johnstone, near Glasgow.

Springfield said the deal will expand its private land bank in West Central Scotland and Ayrshire in line with its stated strategy to expand into new regions.

Springfield executive chairman Sandy Adam said: “This was a rare opportunity to acquire a profitable company that builds great homes.

“Dawn Homes is a well-run business with an excellent reputation in Western Central Scotland. I am delighted that they are joining our team and welcome all their employees into our company.

“There is a massive need for more housing in Scotland and Springfield will play a significant part in addressing that need.

“We will be supporting the skilled Dawn Homes team to build more homes each year.

“Overall, this acquisition will enable Springfield to grow and deliver housing more widely across Scotland.”

Springfield CEO Innes Smith said: “We are delighted to have successfully completed this placing and for the strong support received from new and existing investors.

“The acquisition is part of our stated strategy of accelerating growth through expansion into new areas.

“Through the purchase of Dawn Homes, we have gained another foothold in another part of Scotland.

“The focus of both companies continues to be looking after our customers, building great homes and building more homes.

“We look forward to updating the market on our progress.”