Barratt Developments PLC has acquired land promoter Gladman Developments Limited for a total of £250m
Gladman will operate as a stand-alone business within the Group led by its management team, including David Gladman, chairman and Victoria Hesson, CEO.
The company will continue to supply land to third parties as well as provide an additional route for Barratt to source strategic land and help to promote Barratt’s existing portfolio.
Prior to the pandemic, Gladman generated average annual sales of £52.5m, EBITDA of £19.6m, operating profits of £18.7m and profit before tax of £18.9m.
They also had an annual average of 4,230 plots securing planning permission and 4,156 plots sold.
In its last financial year, Gladman secured planning consent on 2,760 plots across 15 sites and secured sales of 2,796 plots on 18 sites to housebuilders and housing associations. They reported profit before tax of £6.9m and gross assets of £212.3m.
Address the shortage of homes
Gladman’s existing portfolio, comprising 406 sites, is expected to deliver an incremental 500 home completions per annum for Barratt from FY25.
Steven Boyes, Chief Operating Officer and Deputy Chief Executive at Barratt Developments PLC 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.
‘Build 20,000 high quality homes per year’
“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.”
Victoria Hesson, Chief Executive at Gladman Developments, commented: “We are very proud of the expertise, track record and reputation Gladman has built over the past 34 years.
“By becoming part of Barratt we can accelerate our growth as the UK’s leading land promoter and help to realise the potential of Barratt’s attractive strategic land holdings, together delivering more high quality homes and sustainable developments across the country.”