St. Modwen Properties PLC Disposal of non-core retail assets for £34m (9135U)
November 28 2019 - 2:00AM
UK Regulatory
TIDMSMP
RNS Number : 9135U
St. Modwen Properties PLC
28 November 2019
Date of issue: 28 November 2019
LEI: 213800WMV4WVES8TQH05
St. Modwen Properties PLC
("St. Modwen" or the "Company")
St. Modwen sells half of remaining non-core retail assets for
GBP34m
St. Modwen has completed the sale of three retail assets in
Doncaster, Crosby and Kirkby for a combined consideration of
GBP34m, representing just over half of the company's remaining
non-core retail portfolio as at May 2019.
The assets were sold via three separate transactions. The
aggregate consideration of GBP34m represents a discount of 9%
compared to the May 2019 book value of the three assets.
These disposals follow the sale of GBP177m of non-core retail
assets during 2018 at an average discount to book value of less
than 1%. As a result, St. Modwen's residual non-core retail assets
now account for only 2% of its portfolio, down from 16% at the
start of 2018.
Mark Allan, CEO of St. Modwen, commented: "Continuing our
targeted approach to capital recycling, proceeds from these latest
non-core disposals will be reinvested into our substantial
industrial and logistics pipeline, which could deliver over 15m sq
ft of new space over time. With a yield on cost of c. 8% and a
yield on incremental capex of c. 9%, delivery of this pipeline is
expected to drive meaningful development upside and significant
growth in income."
For further information, please contact:
St. Modwen Properties PLC www.stmodwen.co.uk
Mark Allan, Chief Executive
Tom Gough, Head of External Communications
and Stakeholder Relations 0121 222 9400
FTI Consulting
Dido Laurimore
Ellie Sweeney 020 3727 1000
Notes to Editors:
St. Modwen
St. Modwen is an expert developer with over 30 years of property
and regeneration expertise, operating across three dedicated
business units in the UK: St. Modwen Homes, St. Modwen Industrial
& Logistics, and Strategic Land and Regeneration, all of which
are aligned to structural growth trends. A constituent of the
FTSE250, the company is active across England and South Wales, with
a national portfolio totalling GBP1.47bn.
Across our three business units, our highly-skilled people
safeguard our principles of delivering high-quality, sustainable
developments as a positive legacy for businesses and communities
for years to come. We are focussed on delivering value for our
customers, partners and shareholders - operating with our purpose
of 'Changing Places. Creating better Futures.' throughout
everything with do.
St. Modwen Homes builds contemporary new homes across the UK, is
sales active on 25 schemes and is expected to deliver over 1,000
new homes during 2019.
St. Modwen Industrial & Logistics has a committed pipeline
of 1.6m sq ft of high-quality logistics and industrial space and
draws on a total longer-term pipeline of over 15m sq ft of which
60% has planning. Customers include leading logistics, e-commerce
and manufacturing firms.
Our Strategic Land and Regeneration business focuses on
promoting and master developing sites, including releasing land for
house-building and commercial use, as well as delivering
transformational regeneration projects such as New Covent Garden
Market, London; the GBP1bn transformation of Longbridge,
Birmingham; and the on-going development of the GBP450 million Bay
Campus for Swansea University.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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