REGENERATION specialist St Modwen says it continues to make “significant progress” in its business despite an uncertain outlook for the commercial property industry.
In an interim management statement, for the period June 1 to September 30 this year, the Birmingham-based company said today it was capitalising on “positive trends” reported in its half-year review in July.
St Modwen is behind the regeneration of the Longbridge area of Birmingham, including the new 250,000 sq ft Bournville College, which is due to open next year for students, road improvements and 115 new houses.
It says so far in 2010 it has completed more than 200 new lettings and renewals of almost a million sq ft of space.
Gross rent roll currently stands at £45.9m p.a. with £6.7m of new rent generated compensating for the £4.8m lost due to vacations.
The statement added: “We remain active across all of our regions, delivering a range of profitable pre-sold and pre-let schemes, and continuing to see signs of recovery in the residential land market.
“Whilst the outlook for commercial property remains uncertain, currently St. Modwen is not experiencing deteriorating market conditions.
“We are pleased with our strong performance on asset management; not only has it enabled us to maintain occupancy and rental levels but, together with our expectation of marshalling gains from within the hopper, gives us confidence in the out turn for the year.”
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