St. Modwen seeing value in certain acquisitions

St. Modwen Properties said it is beginning to see value in certain acquisition opportunities but has not yet found 'compelling reasons' to use a 'material amount' of its newly-raised funds."We are beginning to see signs of recovery in the residential land market, with bids received, or contracts exchanged at or above current book values, on four disposals totalling 34 acres," it said.Cash management and cost control remain important priorities for the group, it said.It has been active with its asset management during the period, as it seeks to mitigate the impact on its rent roll of current difficult market conditions. Its like-for-like gross rent roll currently stands at some £43m per annum, an increase of £1.3m since 30 November 2008"The occupier market remains challenging with rent levels increasingly under pressure, which may impact further on year end valuations. However, there are more positive signs on the investment front, where liquidity and demand for the right product appear to be improving, and where yields may have found a stable level," said the group.