St. Modwen Properties reports strong progress

St. Modwen Properties on Tuesday said it has "performed well" since the start of the year with two milestone developments in London and Wales.

In February the company raised gross proceeds of £49m to develop the New Covent Garden Market site in Nine Elms, London, without the need to increase its debt.

The group is also signed on for the construction of a new science and innovation campus for Swansea University in Wales.

"The signing of the development agreement with Swansea University coupled with the investment sale of income from the student accommodation illustrates clearly our ability to deliver shareholder value from long-term development opportunities," said Chief Executive, Bill Oliver.

"At the same time, the redevelopment of New Covent Garden Market remains on track and we are excited at the potential of this important project."

In May, the company is due to complete the first phase of the £70m Town Centre at Longbridge which includes an 80,000 sq ft food store pre-sold to Sainsbury's, a 75 bedroom Premier Inn, Beefeater Grill, 24 shops, restaurants and 35,000 sq ft of offices. About 75% of the total space has been pre-sold, pre-let or under offer.

On the residential front, profit remains in line with expectations on the back of strong demand for land and the government's new equity loan scheme Help To Buy.

St. Modwen's said it has achieved "good sales rates" and the Help to Buy programme has opened up the opportunity for a wider range of prospective purchasers.

RD