Residential land value boost for St Modwen

BIRMINGHAM developer St Modwen is continuing to perfrom strongly, partly because of a strategic focus on the residential sector.

In a pre-close trading update for the six month period to May 31, the regeneration specialist reports that profits and cash flows remain consistent with expectations and comparable to the first half results in 2011.

Residential land values, particularly in the South East where half its residential land by value is located, have continued to move forward and the firm’s residential portfolio continues to perform well.

St Modwen said this trend has more than offset the outward market yield movement in its income producing properties in recent months.

Chief executive Bill Oliver said: “Our strategic focus on the residential sector is underpinning our forward momentum, particularly in London and the South East.

“This was demonstrated clearly in the period by our selection for the £2bn regeneration of New Covent Garden Market and the significant land transactions at Mill Hill and Uxbridge which have confirmed the considerable potential of our residential portfolio.

“Our robust business model and active asset management capabilities continue to provide us with confidence that we will continue to drive the growth of the Group in 2012 and beyond.”