St Modwen reaps benefits of investor upsurge
By Sarah Ann McCay05 February 2013
UK-based regeneration specialist St Modwen delivered strong financial results for 2012, thanks to an upsurge in demand from investors interested in redevelopment projects in London and the South East of England.
The company posted a £52.8 million (€61 million) profit before tax and an 8% increase in net asset value. Net rental income also continued to grow, realising £36.2 million (€42 million) for 2012, compared with £35.5 million (€41 million) in 2011.
Active asset management and planning gains helped St Modwen achieve a valuation gain of £48 million (€55 million), up from £33 million (€38 million) in 2011.
Bill Oliver, chief executive of St Modwen, said, “We cannot ignore the current upsurge in investor appetite for development activity in London and the South East, and the prospects arising across the UK from our residential portfolio. We will therefore focus our attention throughout the coming year on these specific areas in order to drive optimal returns.”
The company got 2013 off to a strong start after agreeing terms to deliver the £150 million (€170 million) first phase of Swansea University’s science and innovation campus.
The campus will be located on St Modwen’s 26ha transit site. The first phase of this scheme, which received detailed planning permission in December 2012 from Neath Port Talbot County Borough Council, will comprise 215,000m2 of development including 130,000 m2 of academic space, 899 student apartments and associated retail space. St Modwen expects to start on site in April 2013.
The company has also signed a contract for the £2 billion (€2.3 billion) regeneration of New Covent Garden Market in London.