Elgin-based Springfield Properties, which is building a number of new communities throughout Scotland, announced that it has signed a binding agreement for the sale of 9.5 acres of land for £5.2 million.

“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,” said Springfield.

“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.”

Springfield Properties CEO Innes Smith 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.”

On September 20, shares of Springfield Properties fell about 9% after it announced it would not make dividend payments until its bank debt was “materially reduced.”

The firm’s shares are down about 33% year to date.

Springfield also said on September 20 it was pausing all speculative private housing development and it was “actively pursuing land sales.”

That’s despite the firm reporting that its revenue increased 29.2% to £332.1 million in the year ended May 31, 2023, “driven by the acquisitions of Tulloch Homes in December 2021 and Mactaggart & Mickel Homes in June 2022, reflecting their first full 12-month contributions.”