St Modwen sees a turning of the tide
The tide may have turned in the West Midlands commercial property sector according Birmingham-based developer St Modwen.
The company, based on Quinton Business Park, said it was well placed for growth during the year ahead after seeing an upsurge in interest translate in firm commitments from occupiers and investors.
The regeneration specialist, responsible for projects like the redevelopment of Longbridge and the new £66m Bournville College, said it was planning to build on the success it had achieved last year, during which it completed in excess of 223 transactions on more than 1,500,000 sq ft and 93 acres of commercial space across the Midlands.
Despite the recession, it managed to achieve a total of 140,000 sq ft of sales and 1,380,000 sq ft of lettings during the last 12 months and the succession of deals amounted to sales in excess of £11m and £3.8m of income.
John Dodds, St Modwen’s Midlands regional director, said: “During the last 12 months, we have seen an upsurge in viewings across the Midlands and we are in the privileged position of seeing this interest translate into commitment from occupiers and investors. Given the economic climate, this is a testament to the enduring appeal of high quality product in a good location.”
He said the West Midlands remained a strong region for the company. Altogether it has 30 ongoing regeneration projects and a landownership amounting to more than 1,570 acres. The West Midlands portfolio of managed assets succeeded in providing a gross annual income of £15.8m last year.
Apart from Longbridge and the new college, St Modwen also safeguarded the delivery of Warwickshire College in Rugby when the contractor went into administrative receivership.
“Given its performance over the last 12 months, the Midlands regional office is now in a strong position, with more than £7.5m of deals currently in solicitor’s hands,” added Mr Dodds.
“Long term, St Modwen has a sound business model which secures rental income from over 1,600 tenants across a diverse UK portfolio, and operates a ‘hopper’ system, which has proven successful in ensuring there is a consistent land bank to draw upon, in turn securing a development pipeline for the future.”
Other highlights from 2009 included:
• In December, Stratford on Avon District Council passed a resolution to grant planning permission for a £100m, leisure-led mixed-used development a 478 acre site in Warwickshire – known as the Long Marston Masterplan.
• Planning granted and funding secured for the new £66m Bournville College. Construction of the college started in November and is set to be complete in September 2011.
• Phase one of the Whitley Business Park, Coventry, completed and first tenant secured (Business energy consultants, GET Solutions UK, agreed a 10-year lease on a 3,400 sq ft office at an annual rent of £17 per sq ft.
• The completion of Warwickshire College, Rugby, when the contractor went into administration.
• The letting of the 10,053 sq ft, two-storey Building Seven at Quinton Business Park to Amey. This leaves just under 10,000 sq ft of the total space at the Business Park to let.
• Sale of 35,000 sq ft unit C1 at Centre 38 in Barton to IPP Scomark.
• 60,000 sq ft letting to Shredall Data Storage at Bestwood Business Park, Nottingham, leaving just one 5,000 sq ft unit to let/ for sale.
• 50 per cent of the available space at Great Western Business Park in Worcester is now let or sold, following a tranche of deals amounting to 25,000 sq ft in the autumn
• Just 16,790 sq ft available to let across three properties at the 250,000 sq ft Walsall Enterprise Park
