St Modwen going well on the back of residential growth

BIRMINGHAM developer St Modwen Properties has reported that its business is continuing to perform well.

In an interim trading update for the period to September 30, the firm – which is re-developing the Longbridge area of Birmingham – said the revenue stream arising from its residential portfolio and major projects is experiencing strong growth.

It suggests this is a result of its ‘three tranche’ approach to developing opportunities across its land bank (residential land sales, residential joint ventures and St Modwen Homes). St Modwen says it is continuing to realise the potential contained within this improving marketplace, particularly in the South East, the Midlands and the South West.

“Planning permissions on our sites across the UK are advancing, despite the planning process continuing to prove unreceptive to change, and our active land transactions are achieving price levels at or above book value,” it said.

The firm says its commercial property ventures – including Victoria Shopping Park in Hednesford – are also progressing well.

St Modwen revealed it has agreed terms with the London Borough of Southwark on a scheme for the regeneration of the Elephant & Castle shopping centre.

The scheme is expected to provide 450,000 sq ft of retail and leisure space, up to 1,000 residential units and is anticipated to start on site in 2015.

Chief executive Bill Oliver said: “The on-going performance of the business, driven by a robust business model, underlines the group’s belief that we will continue to grow in 2012 and beyond.

“Our active asset management capabilities, combined with our portfolio of major project opportunities, give us confidence that our results will meet our expectations for the year.”