Springfield Properties has raised £25 million after early trading on the Alternative Investment Market (AIM).

On Monday 16 October, the Group placed 23,584,906 of new shares at a price of 106p per share, capitalising the company at £87m.

Sandy Adam, Executive Chairman of Springfield, said the raised £25m will support an increase in the number of new homes the Group builds, as well as new jobs.

"I am delighted that we have been able to bring £25m of investment into Scotland," he said.

"The level of support shown by our new investors on our admission to AIM is gratifying. It is a real endorsement of the work our employees have put into building a strong and growing business. I would like to thank our new investors for their faith in our company and its staff."

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The Elgin-based house builder revealed the net proceeds of the Placing, together with the Company's debt facilities and internally generated cash, will be used to realise the value of the sites already secured by the Group through the development of its five Villages, which have a total estimated GDV of £1.5 billion.

Mr Adam continued: "Springfield is poised to play a significant part in the delivery of the many new homes needed across Scotland. Our investment in the infrastructure of new Villages will accelerate our building of new homes, private and affordable, in new communities.

"The Scottish Government's aim of building 50,000 affordable homes by 2021 has created an opportunity which underpins the growth of our affordable housing business. We welcome our new shareholders, and look forward to updating them and the wider market as we develop our pipeline of projects and position Springfield as a leading housebuilder in Scotland."

(LM)