Advertisement

St Modwen proposes placing to part-fund London development

Regeneration specialist St Modwen has proposed a placing to help fund its share in the development of the New Covent Garden Market (NCGM) in the Nine Elms area near Vauxhall, London.

Regeneration specialist St Modwen has proposed a placing to help fund its share in the development of the New Covent Garden Market (NCGM) in the Nine Elms area near Vauxhall, London.

St Modwen and joint venture partner VINCI Investments will share the costs of the development, which includes a 550,000 square-foot new wholesale market development as well as residential and commercial accommodation.

Advertisement - Article continues below

The construction of the market is expected to cost a total of £150-200m.

The site, which has a total development value of around £2.0bn, forms a major part of the wider regeneration of Vauxhall, Nine Elms and Battersea, located close the the Vauxhall Tube Station.

"The placing proceeds will enable St. Modwen to exploit the potential of the NCGM site without the need to increase debt leverage on the group's balance sheet, and allowing it to use existing resources to fund other developments and major projects," the company said.

St Modwen intends to raise additional equity capital through a placing of up to 20m new ordinary shares of 10p each, representing around 9.99% of the company's existing issued share capital.

Members of the St Modwen board also intend to subscribe for around £200,000 of new ordinary shares of 10p each in the capital of the company in connection with the placing.

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How “support” and “resistance” can help you spot trading opportunities
Sponsored

How “support” and “resistance” can help you spot trading opportunities

Technical analysis can help traders manage risk and decide where to enter and exit a trade. One simple form of technical analysis is the concept of “s…
6 Jul 2020
House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020