St Modwen says trading has started well

(ShareCast News) - Property company St Modwen said the trading for the year had started well as it continued to extract both short and long-term value-generating opportunities from its land bank through asset management activities, remediation, and success in planning and development.In a pre-close statement for the period 1 December 2015 to 31 May 2016, St Modwen said it continued to add new opportunities to its commercial development pipeline, which stood at 1.7m sq ft and comprised a variety of uses in those regions where there was good evidence of occupier take up.Chief executive Bill Oliver said: "We have experienced a good start to the year as our extensive regional portfolio, commercial development pipeline and housebuilding activities continue to produce real opportunities for growth in terms of group net asset value which we expect to demonstrate at both the half year and the full year 2016, leading to long-term value creation for our shareholders.""Our housebuilding activities through St. Modwen Homes have stepped up a gear and have overtaken the Persimmon Joint Venture with 14 sites under development and another four expected to start on site during the second half of the year.""Overall the housebuilding area of the business remains very profitable, reflecting the strong consumer appetite for housing across the UK, with reservation rates and sales prices currently ahead of targets.""Demand for residential land from third party housebuilders is good and we have agreed or completed site sales in the period for prices at or above book value."The procurement of the market at New Covent Garden Market was now underway, St Modwen said, with vacant possession of the 10 acre Nine Elms Square site anticipated for spring 2017.The company reaffirmed that it intended to either sell, joint venture or develop the site during 2016.During the period the majority of St Modwen's acquisitions activity was focused around the North West region where it invested in a number of retail and industrial-led opportunities including Crosby Town Centre, Liverpool and Warth Industrial Estate in Bury."We have also signed a number of Development Agreements across the UK, the most recent being to develop 1m sq ft of industrial space at Chippenham, Wiltshire and also with the London Borough of Greenwich for the £200m development of the new Spray Street Quarter in Woolwich and in joint venture with Notting Hill Housing," the company said."At the same time, we have disposed of those assets to which we can no longer add material value, all above book value and including Queensmead Shopping Centre, Farnborough for £16.8m."