(Alliance News) - St. Modwen Properties PLC on Thursday said it has sold three retail assets in Doncaster, Crosby and Kirkby for a combined total consideration of GBP34 million, representing just over half of the company's remaining non-core retail portfolio as at May.
St. Modwen shares were up 0.4% at 467.35 pence each in London on Thursday morning.
The sale consideration of GBP34 million represents a discount of 9% compared to the May book value of the three assets, the property developer said. The disposals follow the sale of GBP177 million of non-core retail assets during 2018 at an average discount to book value of less than 1%.
St. Modwen said its residual non-core retail assets now account for only 2% of its portfolio, down from 16% at the start of 2018.
Mark Allan, chief executive 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 15 million square feet of new space over time. With a yield on cost of circa 8% and a yield on incremental capex of circa 9%, delivery of this pipeline is expected to drive meaningful development upside and significant growth in income."
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
