Public sector links keep St Modwen busy
THE regional head of property company St Modwen said that many of its key schemes have been “kept alive” during the recession due to its strong partnerships with public sector organisations.
Speaking as the company revealed a slight decline in half-year profits to £34.9m (2011:£37.9m), but a 5% increase in net asset value per share of 244p, Michelle Taylor said the firm was at “various stages of delivery” on a number of key projects.
A public inquiry is underway regarding the compulsory purchase of land and buildings at Great Homer St in north Liverpool, where a Sainsbury’s-led £150m redevelopment is planned.
“It is hoped that a decision in favour of the 45-acre redevelopment will be reached before the end of the year, which could enable work to start on site during 2013.”
The scheme has faced opposition from local traders whose business units are under threat of compulsory purchase, with several claiming that the compensation being offered is not enough to allow for a relocation.
However, she said community support for the project “remains strong”, citing a 94% approval rating for the project at public consultation events held in May.
“In Wythenshawe, we are in the process of agreeing a new masterplan with Manchester City Council, setting the framework for our very successful development project to continue well into the future.
“We are currently working towards submitting planning applications for a further retail and leisure development,” she added.
“Our portfolio of managed estates is performing well, with recent successes including agreeing a new five-year lease with Lancashire Care NHS Foundation Trust at Blackburn Innovation Centre, part of our wider Evolution Park development.”
The company saw £14m wiped off the value of its portfolio, which it blamed on the lack of appetite among investors for secondary property. However, it added that this was outweighed by £35m of gains it had made through the sale of more houses on schemes.
St Modwen chief executive Bill Oliver said: “Our year has started very well, despite ongoing challenges posed by the wider economy, enabling us to deliver a strong set of first half results.
“Our strategy of an increasing residential focus, with more emphasis on London and the South East, has enabled us to continue to grow the Net Asset Value of the company.”
