Developer continues to build from position of strength
DEVELOPER St Modwen has had a “good start to the year” as it shrugs off concerns around any fragility in the property market caused by the uncertainty of Brexit.
It has told the stock market it has “strong underlying trading activity” while its land bank continue to provide “both short and long-term value-generating opportunities”.
Bill Oliver, St Modwen’s chief executive, who is stepping down later this year, said: “We have experienced a good start to the year as our extensive regional portfolio, commercial development pipeline and housebuilding activities continue to produce real opportunities for growth in terms of group net asset value which we expect to demonstrate at both the half year and the full year 2016, leading to long-term value creation for our shareholders”.
The Birmingham regeneration specialist said it has a commercial development pipeline of 1.7m sq ft, across a variety of uses in the parts of the country “where there is good evidence of occupier take up”.
St Modwen’s annualised rent roll has increased to £60m, which covers the operating costs of the business.
In the last six months it has continued to seek acquisitions, particularly in the North West, including Crosby Town Centre, Liverpool and Warth Industrial Estate in Bury.
The group has also signed a number of development agreements across the UK, including for 1m sq ft of industrial space in Chippenham, Wiltshire, and with the London Borough of Greenwich for the £200m development of the new Spray Street Quarter in Woolwich.
It has disposed of some assets, including the £16.8m sale of a shopping centre in Farnborough.
