Springfield Properties to build more than 100 affordable homes within Clyde Gateway site

Springfield Properties chief executive Innes Smith outside a Motherwell show home. Picture: Contributed

The firm said it had signed an agreement totalling £18.2 million with West of Scotland Housing Association (WSHA) for the development of the 114 homes in Dalmarnock, Glasgow.

It forms part of the Clyde Gateway project – Scotland’s largest regeneration programme – and will be jointly funded by Glasgow City Council with private finance provided by WSHA Lenders.

Planning consent is already in place, and the group expects to commence construction this month and to complete handovers by the end of its 2021/22 financial year. Springfield said the agreement improved its revenue and profit visibility.

The firm will deliver 114 homes for WSHA, comprising one to five-bedroom social rented and mid-market rent homes. The plans also include two commercial units and the provision of play areas.

The 2.2-hectare development has planning consent for 237 homes, and the group said it was in talks for the provision of the second phase of 123 homes with another provider.

The Clyde Gateway programme is backed by the Scottish Government and aims to achieve “social, economic and physical change” for communities over an area of 840 hectares. Over a 20-year period to 2028, the project intends to deliver the construction of 10,000 new homes and the creation of 21,000 jobs.

Proud

Innes Smith, the chief executive of Springfield Properties, said: “This is another great contract for Springfield that strengthens our revenue visibility over the next two years. We are also proud to be contributing to the Clyde Gateway regeneration, which is an important programme to stimulate growth in this area in the West of Scotland as well as provide much needed additional housing in Glasgow.

“We are pleased to be partnering with West of Scotland Housing Association for the first time and look forward to delivering well-designed, attractive, highly energy efficient homes that will have a positive impact on the area.”

Andrew Kubski, director of development and asset management at WSHA, added: “West of Scotland Housing Association is excited to be working with Springfield Properties on our first joint Glasgow project.”

Last month, Springfield Properties provided a bullish outlook for the year amid “greater market certainty” and rewarded shareholders with a double-digit hike in their interim dividend. Shareholders will pocket an interim dividend of 1.4p, up 16.7 per cent.