Elgin based house builder Springfield will pay £5m in cash up front then £44m over the next three years as existing developments are sold.

Redrow’s operation in Scotland consists of eight sites with planning permission and in the year ended 30 June 2010 the business generated turnover of £31m and a loss before tax of £1.7m.

Redrow will use the cash to buy land in London and the South East.

Steve Morgan, Chairman of Redrow, said: “Springfield is a successful Scottish house builder and the transaction will substantially increase its presence in the Central Belt.

“The transaction will also provide our customers and employees with a good home for the future, whilst enabling Redrow to increase its investment in land in London and the South East.”