The net book value of the assets sold is £49m. Springfield is paying £5m cash on completion of the deal and deferred cash consideration of £44m to be paid as developments are sold over the next three years.
Redrow's operation in Scotland consists of 8 sites with planning permission.
Redrow announced its intention to sell the business in April, saying that “the operation there is not of sufficient scale to generate acceptable returns”.
In the year ended 30 June 2010, Redrow's operation in Scotland made a pre-tax loss of £1.7m on a turnover of £31m.
Redrow said that the proceeds of the disposal will be used to buy land in other operations, mainly in London and the southeast.
Redrow chairman Steve Morgan said: "The Board is pleased to have secured a buyer for our operation in Scotland following a competitive process that we outlined in our April statement. Springfield is a successful Scottish house builder and the transaction will substantially increase its presence in the central belt. The transaction will also provide our customers and employees with a good home for the future, whilst enabling Redrow to increase its investment in land in London and the southeast."
Family-owned Springfield Properties was established in 1956 and is part of property specialists Springfield Group. Chairman Sandy Adam is grandson of the company’s founder.
Since 1998, Springfield has built more than 2,000 homes in northeast Scotland.
Got a story? Email news@theconstructionindex.co.uk
