Property group chief executive sets out his growth priorities

The new chief executive of property group St Modwen, Mark Allan, has set out four strategic objectives which he will use to push the growth of the business.

Allan took over from Bill Oliver last December and has today unveiled the conclusions of a six-month review of the business.

“The outcome of this review has been positive, highlighting the strength and depth of opportunity within the business and portfolio to create value through our regeneration, commercial and residential expertise,” he said.

The four objectives are to accelerate commercial development activity, to grow its residential and housebuilding business, to develop its reputation for regeneration work, and to focus on the group’s portfolio and capital discipline.

Allan added: “Having experienced a positive start to the year that reflects management expectations, we will now continue to refine the strategy further and concentrate on those areas of our deep and diverse portfolio that present genuine opportunities for value generation and further business growth which will ultimately lead to enhanced shareholder returns.”

Birmingham-based St Modwen currently has a market value of around £750m, having been above £1bn for much of 2015. However its share price halved, reaching a low of 218p in the wake of last year’s referendum, before recovering steadily. It closed last night at 335p.

St Modwen Homes is currently active on 16 sites across the UK and the group has highlighted the resilience of the UK housebuilding market, “particularly in the regions”.

It said it is also progressing sites through planning and asset management, highlighted by securing planning permission for a 677,000 sq ft industrial development at a 35-acre site in Tamworth, Staffordshire, where it expects the first phase of works to start on site in the second half of the year. It has also achieved “good levels of rental growth” after renegotiating a number of leases across its industrial portfolio, including new leases at two major sites in the Midlands.