St Modwen aims to raise cash for New Covent Garden scheme

BIRMINGHAM developer St Modwen is aiming to raise around £2m through a share placing.

The firm wants to use the money – to be raised through placing 20,016,057 shares at 10p each – to fund, in part, its share of the development of the New Covent Garden Market (NCGM) site, by way of its joint venture with VINCI Investments Limited.

NCGM forms part of the regeneration of the Nine Elms area, one of central London’s key mixed use development areas.

Bill Oliver, St Modwen’s chief executive, said: “The redevelopment of New Covent Garden Market represents a landmark project in central London for St. Modwen, providing us with an opportunity to participate in one of London’s most exciting long-term regeneration schemes and to utilise our extensive experience in regenerating complex, brownfield sites. 

“The proceeds from the placing will allow St Modwen to exploit the potential of the development and create value for shareholders without the need to increase the debt leverage on the group’s balance sheet, whilst seeking to ensure the Company has the financial flexibility to deliver its other pipeline projects.”