Decent showing from St Modwen as campus deal announced
DEVELOPER St Modwen has delivered a strong set of results with a 12% increase in net trading profit a highlight.
And the Birmingham firm has also announced that it has agreed terms with Swansea University to deliver the first phase of its £150m science and innovation campus.
Announcing its annual results for the year ending November 30, St Modwen declared a 12% increase in net trading profit to £25.5m (2011: £22.8m). Profit before all tax was £52.8m (2011: £51.7m).
The firm’s gearing at year end was 71% (2011: 73%) and it said the completion of a successful £80m retail bond issue has provided it with substantial headroom in facilities.
St Modwen saw valuation gains of £48m (2011: £33m) generated through active asset management and planning gains, offsetting a £20m market-driven valuation loss (2011: £1m profit).
The firm says it sees continued positive outlook for residential land with London residential transactions driving valuation gains.
Chief executive Bill Oliver said: “This has been another successful year during which we have achieved some significant milestones across our portfolio and, in particular, on our major development projects.
“These achievements underline our growing presence in the London and the South East market while also proving that there are still opportunities in the regions for well-placed and well-priced product.
“We cannot ignore the current upsurge in investor appetite for development activity in London and the South East and the prospects arising across the UK from our residential portfolio. We will therefore focus our attention throughout the coming year on these specific areas in order to drive optimal returns, as well as advancing our larger schemes, including of course the New Covent Garden Market and Swansea University developments.”
John Dodds, Midlands regional director, added: “Our continued careful management of our Midlands assets alongside a range of exciting regeneration projects, ensures that we will remain active and productive throughout the coming years.
“The £1bn flagship regeneration of Longbridge is progressing well. The £70m town centre is attracting a range of operators and retailers and the new Austin Park is being constructed and landscaped.”
Swansea University’s planned science and innovation campus will be located on St Modwen’s 65 acre Transit site, one of the holdings within a 2,500 acre portfolio acquired from BP in 2009.
The first phase of this scheme, which received detailed planning permission in December 2012 from Neath Port Talbot County Borough Council, will comprise 700,000 sq ft of development including 430,000 sq ft of academic space, 899 student apartments and associated retail space. St. Modwen expects to start on site in April.
The university has already secured European Investment Bank and Welsh Government funding whilst St Modwen has also secured the investment sale of 50% of the student accommodation to a major institutional investor.
An outline planning permission is already in place for future development phases which will be in excess of £300m in value.
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