Savills Capital Advisors acted as lead financial advisor to Gladman in the sale of the business.
The acquisition combines Barratt’s best-in-class housing construction operations with Gladman’s excellent land sourcing and development capabilities, providing greater flexibility for landowners and significantly improving Barratt’s strategic land credentials.
Gladman operates as a land developer in the UK with particular strength in the South of England. In the three years to March 31, 2019, before the onset of the COVID-19 pandemic, Gladman generated average annual sales of £52.5m, EBITDA of £19.6m, operating profit of £18.7 million and pre-tax profit of £18.9. m; with an annual average of 4,230 plots under planning permission and 4,156 plots sold for Gladman’s promotion partners over the same period.
In its last fiscal year, through March 31, 2021, Gladman, despite continued disruptions created by COVID-19, obtained planning permission for 2,760 plots across 15 sites with a high planning success rate and , through its targeted marketing, has secured the sale of 2,796 plots across 18 sites to homebuilders and housing associations. In the year to March 31, 2021, Gladman reported pre-tax profit of £6.9 million and gross assets of £212.3 million as of that date.
Following the acquisition, Gladman will operate as a stand-alone business within the group, led by its experienced management team, including David Gladman, Chairman and Victoria Hesson, CEO. Gladman will continue to provide land to third parties and will provide Barratt with an additional avenue to source strategic land and help promote Barratt’s existing strategic land portfolio.
Gladman’s existing portfolio, comprising approximately 406 potential sites with an average size of 242 plots, is expected to deliver an additional 500 home completions per year for Barratt from FY25.
Joe Guilfoyle, Savills Capital Advisors, says:
“Gladman is the industry’s leading land developer and plays a vital role in unlocking consented residential land in places where people aspire to live, helping to solve the UK’s housing crisis.
This transaction brings together the unrivaled skills and experience of Gladman with the industry-leading development capabilities and track record of Barratt. This gives landowners confidence that Gladman’s approach will drive value, demonstrates to local authorities that they are now part of a leading provider of high-quality homes and strengthens the combined company’s future growth potential. . »
Sam Isaacs, Savills Capital Advisors, says:
“The deal comes at an important time for the UK property market and we are proud to have advised Gladman on this historic transaction.”