St Modwen offloads retail stock in £34m deal

St Modwen has sold three retail assets in Doncaster, Crosby and Kirkby in a £34m deal.

The transaction represents just over half of the company’s remaining non-core retail portfolio as of May.

The disposals follow the sale of £177m of non-core retail assets during 2018. As a result, St Modwen’s residual non-core retail assets now account for only 2% of its portfolio, down from 16% at the start of 2018.

Mark Allan, chief exexutive 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 around 8% and a yield on incremental capex of c. 9%, delivery of this pipeline is expected to drive meaningful development upside and significant growth in income.”