Developer disposes of three retail sites in deals worth £34m

Kirkby

Developer St Modwen has sold of three retail sites for a total of £34m.

The sites include two in Merseyside – in Crosby and Kirkby – and a third in Doncaster.

The assets were sold via three separate transactions.

The disposals follow the sale of £177m of non-core retail assets during 2018 at an average discount to book value of less than one per cent.

St Modwen’s residual non-core retail assets now account for just two per cent of its portfolio, down from 16 per cent at the start of 2018.

Mark Allan, chief executive of St Modwen, said: “Continuing our targeted approach to capital recycling, proceeds from these latest non-core disposals will be reinvested into our substantial industrial and logistics pipeline, which could deliver over 15m sq ft of new space over time.

“With a yield on cost of 8% and a yield on incremental capex of 9%, delivery of this pipeline is expected to drive meaningful development upside and significant growth in income.”

Knowsley Council had been in discussions with St Modwen over a retail scheme in Kirkby.

The council is looking to regenerate the town centre.

The first scheme to come forward will be a 94,000 sq ft retail-led scheme, which includes a Morrison’s supermarket, a Home Bargains store and a KFC outlet.

St Modwen bought the site from Tesco four years ago for £36m.

 

Click here to sign up to receive our new South West business news...
Close