St Modwen makes steady progress
DEVELOPER St Modwen Properties has said it continues to make progress across all areas of its business and expects profits to be in line with expectations.
As the company enters its close period, the Staffordshire-based business said it was pleased that the company had continued to perform well and that profits, property valuations and net asset values continue to be in line with management expectations, showing healthy year-on-year growth.
The company is developing a number of key sites around the north west, including a new town centre for Wythenshawe in south Manchester.
Bill Oliver, chief executive, said: “The outlook for St. Modwen remains positive, both in terms of profit and net asset value growth. We continue to capitalise on our ability to actively manage and progress our development projects across the UK. This and our strong forward position of pre-lets and pre-sales gives us confidence in our future growth.”
It said it had continued to see rental income growth with active management of its portfolio helping it to grow the gross rent income by more than 6% to £46m per annum.
During the year it has completed over 270 new lettings and renewals, maintained rental levels and reduced voids across the portfolio to 12%, which compares with 17% in the November last year.
Residential land values have also recovered and the firm said it had seen increased activity in the residential land sector, with over 70% of its residential portfolio (20,000 plots) either secured with planning permission or allocated within local plans.
The firm said that the commercial market remains uncertain but added that its regional teams continued to find opportunities to generate value.
The firm added that renewal dates for the majority of its existing bank facilities had been extended to 2014/15, with no changes to the existing terms and conditions.
Meanwhile, St Modwen has also announced that it has appointed Morgan Sindall as contractor on its new Venture Fields leisure scheme at the waterfront site in Widnes.
Building work on the site has already just begun and the site will eventually include a five-screen cinema operated by Reel Cinemas, a bowling alley, 36,000 sq ft ice rink, a 60-bed hotel with restaurant and a Frankie & Benny’s restaurant. The scheme should complete by autumn 2011 and is a joint venture between St Modwen and Halton Borough Council.
Michelle Taylor, regional director at St. Modwen said: “We have over a number of years appointed Morgan Sindall to carry out various projects in the North West. We have been impressed by their approach to customer service and commitment to producing a quality product on time and to budget.
“These are characteristics which will be important on a development such as Venture Fields, where we have five committed occupiers who are planning to be open for business before Christmas next year.
St Modwen said that one restaurant unit of around 3,885 sq ft remains available butthat it is continuing to attract interest from a number of operators.
