St. Modwen Properties PLC SALE OF £82M OF RETAIL ASSETS 3% ABOVE BOOK VALUE (3976H)
November 15 2018 - 1:00AM
UK Regulatory
TIDMSMP
RNS Number : 3976H
St. Modwen Properties PLC
15 November 2018
Date of issue: 15 November 2018
LEI: 213800WMV4WVES8TQH05
ST. MODWEN PROPERTIES PLC
("St. Modwen" or "the Company")
ST. MODWEN SELLS GBP82M 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 GBP72.0m. The disposal price represents a small
premium to the GBP70.2m book value of the asset as at November
2017. The Edmonton Green shopping centre produced GBP4.0m 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 GBP9.9m 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 GBP177m
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 GBP49m of small assets in the year to
date, this means we have comfortably exceeded our increased target
to sell GBP150-175m 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."
- ENDS -
For further information, please contact:
FTI Consulting St. Modwen Properties PLC
Dido Laurimore/ Tom Gough/ Ellie Kathryn Edwards
Sweeney Interim Head of Corporate Communications
T: 020 3727 1000 T: 0121 222 9400
E: stmodwen@fticonsulting.com E: corpcomms@stmodwen.co.uk
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 GBP1.5bn 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 GBP450 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 GBP692 million income-producing portfolio.
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END
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