Springfield Properties PLC on Monday said that it has signed a binding agreement with an unspecified buyer to sell some of its land for £5.2 million.

The Scotland-focused builder of private and affordable housing has agreed to sell 9.5 acres of land, which equates to 92 plots.

Springfield will receive £500,000 in ‘the coming days’, after which the agreement becomes unconditional ‘in all respects’. The remaining £4.7 million is expected to be paid upon completion, around March next year.

Springfield said the proceeds from the sale would be used to reduce group debt.

‘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,’ said Chief Executive Officer Innes Smith.

‘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.’

Springfield Properties share were marginally higher at 52.05 pence each in London on Monday morning.

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