15 Nov 2018 07:00
Date of issue: 15 November 2018
LEI: 213800WMV4WVES8TQH05
ST. MODWEN PROPERTIES PLC
("St. Modwen" or "the Company")
ST. MODWEN SELLS £82M OF RETAIL ASSETS 3% ABOVE BOOK VALUE
St. Modwen has exchanged contracts for the disposal of its long leasehold interest in the 495,000 sq ft Edmonton Green shopping centre in Enfield, north London, to Edmonton Green Limited, an affiliate of Crosstree Real Estate Partners LLP, for a total cash consideration of £72.0m. The disposal price represents a small premium to the £70.2m book value of the asset as at November 2017. The Edmonton Green shopping centre produced £4.0m net rental income during 2017 and is currently 96% let to more than 160 tenants. The sale is expected to complete shortly.
In addition, St. Modwen has completed the sale of two smaller retail assets in Liverpool and Cannock via two separate transactions for £9.9m in aggregate; 6% above the combined book value of the assets as at November 2017.
Rupert Wood, Property Director - Asset Management, St. Modwen, said:
"These disposals are in line with our strategic objective to refocus our portfolio towards assets with strong structural growth characteristics. Since the start of this year we have sold £177m of retail assets, on average less than 1% below book value, representing more than half of our overall retail portfolio. Combined with the disposal of £49m of small assets in the year to date, this means we have comfortably exceeded our increased target to sell £150-175m of retail and small assets for the full year. Whilst these disposals will reduce our rental income in the near term, recycling the proceeds into our much higher yielding industrial/logistics pipeline is expected to deliver a marked increase in income over time."
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For further information, please contact:
FTI Consulting Dido Laurimore/ Tom Gough/ Ellie Sweeney T: 020 3727 1000 E: stmodwen@fticonsulting.com
| St. Modwen Properties PLC Kathryn Edwards Interim Head of Corporate Communications T: 0121 222 9400 E: corpcomms@stmodwen.co.uk
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Notes to Editors
St. Modwen Properties PLC: St. Modwen is a different kind of property partner, taking a different view. Thirty years' experience as an expert developer and regeneration specialist, dealing with complex and challenging sites, has taught us to look at things differently, challenge the norm and create new and sustainable solutions to benefit all those involved. Today, we continue to unlock value and deliver quality outcomes across a wide range of activities, from regeneration to the long-term planning and development of commercial and residential assets, as well as active asset management.
We combine end-to-end expertise - through our network of regional offices, our residential business and our central asset management team, and through joint ventures with public sector and industry leading partners - to deliver lasting results for all concerned. We create places where communities grow, businesses flourish and people can feel and be at home.
St. Modwen's £1.5bn national portfolio of over 100 projects includes the regeneration of New Covent Garden Market, London; the transformation of Longbridge, Birmingham; and the on-going development of the £450 million Bay Campus for Swansea University. St. Modwen Homes is currently selling on 19 sites across the country and our asset management team pro-actively manages our £692 million income-producing portfolio.