28 Nov 2019 07:00
Date of issue: 28 November 2019
LEI: 213800WMV4WVES8TQH05
St. Modwen Properties PLC
("St. Modwen" or the "Company")
St. Modwen sells half of remaining non-core retail assets for £34m
St. Modwen has completed the sale of three retail assets in Doncaster, Crosby and Kirkby for a combined consideration of £34m, representing just over half of the company's remaining non-core retail portfolio as at May 2019.
The assets were sold via three separate transactions. The aggregate consideration of £34m represents a discount of 9% compared to the May 2019 book value of the three assets.
These disposals follow the sale of £177m of non-core retail assets during 2018 at an average discount to book value of less than 1%. As a result, St. Modwen's residual non-core retail assets now account for only 2% of its portfolio, down from 16% at the start of 2018.
Mark Allan, CEO of St. Modwen, commented: "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 15m sq ft of new space over time. With a yield on cost of c. 8% and a yield on incremental capex of c. 9%, delivery of this pipeline is expected to drive meaningful development upside and significant growth in income."
For further information, please contact:
St. Modwen Properties PLC | www.stmodwen.co.uk |
Mark Allan, Chief Executive Tom Gough, Head of External Communications and Stakeholder Relations | 0121 222 9400 |
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FTI Consulting |
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Dido Laurimore Ellie Sweeney | 020 3727 1000 |
Notes to Editors:
St. Modwen
St. Modwen is an expert developer with over 30 years of property and regeneration expertise, operating across three dedicated business units in the UK: St. Modwen Homes, St. Modwen Industrial & Logistics, and Strategic Land and Regeneration, all of which are aligned to structural growth trends. A constituent of the FTSE250, the company is active across England and South Wales, with a national portfolio totalling £1.47bn.
Across our three business units, our highly-skilled people safeguard our principles of delivering high-quality, sustainable developments as a positive legacy for businesses and communities for years to come. We are focussed on delivering value for our customers, partners and shareholders - operating with our purpose of 'Changing Places. Creating better Futures.' throughout everything with do.
St. Modwen Homes builds contemporary new homes across the UK, is sales active on 25 schemes and is expected to deliver over 1,000 new homes during 2019.
St. Modwen Industrial & Logistics has a committed pipeline of 1.6m sq ft of high-quality logistics and industrial space and draws on a total longer-term pipeline of over 15m sq ft of which 60% has planning. Customers include leading logistics, e-commerce and manufacturing firms.
Our Strategic Land and Regeneration business focuses on promoting and master developing sites, including releasing land for house-building and commercial use, as well as delivering transformational regeneration projects such as New Covent Garden Market, London; the £1bn transformation of Longbridge, Birmingham; and the on-going development of the £450 million Bay Campus for Swansea University.