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.

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

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

Investors are shunning UK stocks – but they might regret that in a year’s time
UK stockmarkets

Investors are shunning UK stocks – but they might regret that in a year’s time

There are a number of reasons why investors aren't buying UK stocks, says John Stepek. But they may want to rethink that strategy.
29 Sep 2020
Are we really in a stockmarket bubble?
US stockmarkets

Are we really in a stockmarket bubble?

The rise of “cash shell” companies, sky-high valuations – everything seems to point to a stockmarket bubble. But all may not quite be as it appears, s…
28 Sep 2020
Two commodities that could lie at the heart of the next resources bubble
Energy

Two commodities that could lie at the heart of the next resources bubble

Commodities tend to move in cycles. And if you can identify early on which ones are about to surge in demand, you can profit handsomely. Dominic Frisb…
30 Sep 2020