St. Modwen Properties PLC TRADING UPDATE (8826Q)
December 05 2016 - 1:45AM
UK Regulatory
TIDMSMP
RNS Number : 8826Q
St. Modwen Properties PLC
05 December 2016
Date of issue: 5(th) December 2016
ST. MODWEN PROPERTIES PLC
("St. Modwen" or the "Company")
TRADING UPDATE
RESILIENT PERFORMANCE SUPPORTS PROSPECTS FOR CONTINUED GROWTH IN
NET ASSET VALUE
St. Modwen Properties PLC (LSE: SMP), the UK's leading
regeneration specialist, today provides a trading update for the
financial year ended 30th November 2016.
Overview
St. Modwen's diversified portfolio and business has continued to
perform well over the past few months, demonstrating resilience in
the face of broader market uncertainties. Taking account of all
activities across the Group, the Board expects performance for the
second half of the financial year to be broadly in line with that
reported for the first half.
New Covent Garden Market
We have previously indicated that during 2016 we would be
bringing the 10-acre Nine Elms Square site to market. Formal
marketing commenced late summer and, whilst we are still at an
early stage and there can be no guarantee that any transaction will
take place, we can confirm that we have received firm levels of
interest from a number of parties and the Board has been encouraged
by the progress to date. We will provide a further update as
appropriate in due course.
Resilience in our regional commercial portfolio
We have continued to experience robust regional occupier demand
across the UK for both new and existing commercial space. With this
as a backdrop, we have continued to pursue investment and
development opportunities that we believe exhibit excellent value
creation potential, while also realising value from more mature
assets:
-- We have invested over GBP45m in new acquisitions, most
recently acquiring a 10.5 acre logistics depot in Barming, Kent for
GBP6.2m and reflecting a 7.54% net initial yield.
-- We have made good progress with our commercial development
programme, both in terms of construction progress and letting
activity. Over the last 12 months, we have completed and sold or
leased approximately 750,000 sq ft of commercial space and our
pipeline remains well stocked with new opportunities.
-- We have sold the 50 acre Heartlands Park site in Birmingham
to the Secretary of State for Transport for the HS2 project and for
a consideration of GBP25m.
Continued residential growth
Residential activity continues to be a key growth area for the
Group, both through its housebuilding subsidiary, St. Modwen Homes,
and the sale of 'oven-ready' development sites to third party house
builders. The UK housing market has remained resilient throughout
the second half of 2016, supporting the Group's progress.
Since July 2016, St. Modwen Homes has commenced work on three
new sites and is now active on a total of 18 sites, with sales
volumes and profits anticipated to be higher in the second half of
the year compared to the first half.
In response to ongoing demand from third party housebuilders we
have continued to agree and complete sales of residential land for
prices at or above book value.
Mark Allan, Chief Executive, said:
"Having formally taken up the role of Chief Executive on 1(st)
December 2016 I am pleased to report that, since the publication of
its half year results, the Company has continued to trade well,
demonstrating excellent resilience in an unsettled environment.
"St. Modwen's business is focused on creating genuine value from
its deep and diverse portfolio of development and investment
opportunities. Everything I have seen in my first few weeks in the
business suggests that it is well placed to continue doing so."
The Company intends to announce its annual results on 7(th)
February 2017.
-ENDS-
ENQUIRIES:
St. Modwen Properties PLC Tel: 0121 222 9400
Mark Allan, Chief Executive www.stmodwen.co.uk
Rob Hudson, Group Finance Director
Charlotte McCarthy, Head of PR and Communications
FTI Consulting Tel: 020 3727 1000
Dido Laurimore/ Tom Gough/ Ellie Sweeney
This information is provided by RNS
The company news service from the London Stock Exchange
END
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