St Modwen looks to positive half-year
ST MODWEN has said that despite challenging market conditions it is hopeful of being able to present a positive half-year report.
In an interim management statement covering the period December 1 to March 26, the Quinton-based firm said the occupier market remained tough with demand for new space still at a low level.
However, it said that encouragingly investor appetite was returning, and the recent surge in prices for prime and London-based investment properties should begin to benefit other areas of the market over the coming months.
Similarly, it said the increasing level of housebuilding activity would gradually work its way into improving demand for residential land.
“Both of these trends give us confidence that the market is beginning to recover, and that we will be able to report positively at the half year,” said the statement.
The company, behind projects like the regeneration of Longbridge, said it had been able to transact a steady flow of business and it continued to achieve planning successes which were paving the way for the development of new sites.
St Modwen (SMP) said it remained active across all of its regions and was delivering a range of mainly pre-sold and pre-let schemes, predominantly for food retailers and the public sector.
The firm has been boosted by the recent sale of the Catford Shopping Centre to Lewisham Borough Council for £11.5m.
A number of other large, pre-sold construction projects are also progressing well, it said. These include the 52,000 sq ft pre-sold Morrisons supermarket at Deeside District Centre, Connah’s Quay, Flintshire; the flagship 250,000 sq ft Bournville College at Longbridge; and the 150,000 sq ft Warwickshire College building at Rugby.
In addition, it said it had begun remediation works at Baglan Bay and a number of the other sites acquired in a portfolio from BP at the end of 2009.
Progress has also been made on the remediation of Coed Darcy, its other former BP site in South Wales, and it expected to complete the first phase of residential development on this site later this year.
The developer said it had also been tightening up its asset management as it sought to reduce the impact of uncertain market conditions on its rental income.
In the first four months of the year its gross rent roll has continued to grow and currently stands at £44.7m per annum, with new letting activity keeping pace with vacations.
Looking ahead, it said it had successfully obtained planning consent for 500 residential homes, 300 holiday homes and 1m sq ft of employment uses at Long Marston, Stratford-upon-Avon – the former MoD site it purchased in 2004.
It has also obtained consent for Etrop Court, a 48,000 sq ft office complex in Wythenshawe. The building contract has been placed and the development is set to play a key part in a major town centre regeneration.
A planning application has been submitted for the redevelopment of the 110-acre RAF Uxbridge site in Hillingdon. The plans include proposals for: 1,425 new homes, including affordable housing; 200,000 sq ft of mixed-use commercial development; a new 1,200-seat theatre; warden-assisted elderly accommodation; a GP surgery; a primary school; and a hotel.
It has also submitted applications for an 85,000 sq ft foodstore in Hednesford, pre-sold to Tesco, plus 35,000 sq ft of additional retail. It has also spent £10m in acquiring 35 developable acres, including a vehicle component factory in the town, completing the site assembly for the £50m town centre redevelopment
At Longbridge proposals for an 81,000 sq ft foodstore, together with 100,000 sq ft of other retail and leisure facilities have also been lodged.
