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Giant house builder buys land specialist in £250m deal
Barratt, the UK’s largest house builder, has acquired land-buying specialist Gladman in a deal worth £250m.
Barratt announced the acquisition of Gladman to the stock market this morning, saying the move aims to “enhance Barratt’s strategic land credentials”.
Gladman operates as a land promoter and has a particular focus in the South of England. Last year it secured sales of 2,796 plots across 18 sites to house builders and housing associations. It also posted a pre-tax profit of £6.9m, slightly down from the £18.9m it posted in 2019-20.
It currently has a portfolio of around 406 potential sites, which each site having an average size of 242 homes.
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The deal is expected to incrementally add 500 completions per year to Barratt’s pipeline from 2025.
It will see a £250m cash consideration on a debt and cash-free basis.
Gladman will initially operate as a standalone business and be led by the current management team, including chair David Gladman.
The business will continue to supply land to third parties as well as providing an additional route for Barratt to source strategic land and promote Barratt’s existing land portfolio.
Barratt is currently the country’s largest house builder in the UK, having posted a pre-tax profit of £909.8m on a turnover of £4.7bn in 2019-20, the last full year of trading not impacted by COVID-19.
Steven Boyes, chief operating officer and deputy chief executive at Barratt, said: “Barratt has built a reputation for a disciplined and competitive approach to acquiring land and Gladman’s strong credentials in identifying attractive land and promoting sites through the planning process will be an important addition to the group.
“As always, we are working hard to help address the shortage of homes across the country and today’s acquisition of a long-standing and trusted partner will further strengthen our ability to deliver our medium-term target to build 20,000 high-quality homes per year.”
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