LONDON (Alliance News) - St Modwen Properties PLC on Tuesday said it has experienced "a good start to the year", as its portfolio benefitted from strong investment activity made at the end of 2015.
The FTSE 250-listed group, which focuses on regenerating brownfield sites and building residential developments, said in the six months to May 31, its annualised rent roll grew to GBP60.0 million, having been GBP58.4 million at its year-end on November 30. This "now covers the operating costs of the business which further underlines our strong financial base," the company said.
St Modwen Properties said it continued to add new opportunities to its commercial development pipeline in the period, with the pipeline now standing at 1.7 million square feet and comprising of "a variety of uses".
St Modwen Properties added that it remains acquisitive across the UK, noting that the majority of its acquisition activity since the the year-end had been focused across the North West region, where it invested in a number of retail and industrial-led opportunities. These included Crosby Town Centre in Liverpool and Warth Industrial Estate in Bury.
The company said it sold assets "to which we can no longer add material value", all above book value. This included the disposal of its Queensmead Shopping Centre in Farnborough for GBP16.8 million.
St Modwen "stepped up a gear" in terms of residential development, and has 14 sites under development, with another four expected to start on site during the second half of the year, it said. Meanwhile its private rented sector developments continue to be progressed and it has recently secured a private rented sector-led development at Leegate in Lewisham, London for 229 apartments, St Modwen added.
Its south London New Covent Garden Market development remains on track, with vacant possession of the 10 acre Nine Elms Square site expected for Spring 2017. St Modwen said it intends to explore its options to either sell, joint venture or develop the site during 2016.
"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," said Chief Executive Bill Oliver.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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