SPRINGFIELD Properties has raised £8.7 million from the sale of around 11.2 acres of land as it continues to chip away at its debt.

And it said it was in “advanced” talks with regard to further sales.

The deal is the latest in a series of land sales executed by the Highland housebuilder to raise cash since embarking on a strategy to shore up its balance sheet in September, when it suspended dividends as interest rates rose and mortgages were becoming more expensive. The company has now raised more than £18m from land sales since October.

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Springfield said it would receive £6.5m in its current financial year from its latest sale, which concerns land equating to 85 plots owned wholly by the group, with the remainder coming in the following year. The company told the City that the proceeds from the sale will support its ongoing target to reduce debt.

It did not disclose the location of the land or the buyer.

Chief executive Innes Smith said: “We are pleased to have agreed another profitable land sale, which brings the total since October 2023 to over £18m. With one of the largest, high-quality land banks in Scotland, these sales are an attractive way of monetising our land bank without impacting our development pipeline. We are in advanced negotiation regarding further land sales, which remains a key element of our strategy to reduce our bank debt."

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The company's latest land sale comes shortly Springfield signed a new contract worth £15.3m with Highland Housing Alliance (HHA) to deliver 75  new homes for mid-market rent across three developments in Inverness, Kirkhill and Aviemore.

The two companies say the contract, which Springfield will deliver under its Tulloch Homes brand, will see the construction of high-quality and energy-efficient new homes for rent that will attract and retain people who want to work and live in the region.

Springfield will publish its interim results to the stock market today (Tuesday).

Shares closed up nearly 2%, or 1.5p, at 78p.