5th Dec 2016 07:21
LONDON (Alliance News) - St Modwen Properties PLC on Monday said it expects to post a performance in the second half of its financial year broadly in line with the first, adding that demand has allowed it to sell residential land for prices at or above book value.
The FTSE 250-listed group, which focuses on regenerating brownfield sites and building residential developments, noted its portfolio has continued to perform well in recent months, showing the interest in its New Covent Garden Market site.
Formal marketing for the site, located in the London Borough of Wandsworth, commenced in late summer, and though St Modwen said it was at an early stage, there was "firm levels of interest" from a number of parties.
St Modwen said it had continued to experience robust regional occupier demand across the UK for new and existing commercial space in its second half, which ended November 30, in light of which it has continued to pursue investment and development opportunities.
St Modwen said it invested GBP45.0 million in new acquisitions in the year to the end of November, and completed and sold or leased around 750,000 square feet of commercial space.
The group said residential activity continued to be a key area of growth, with the UK housing market remaining "resilient throughout the second half of 2016".
Since July, St Modwen has commenced work on three new sites and is now active on 18 sites, it said, with sales and profit from its residential operations expected to be higher in the second half than the first.
In response to demand from third-party housebuilders, St Modwen said it has continued to agree and complete sales of residential land for prices at or above book value.
The company will report its annual results on February 7.
By Hannah Boland; [email protected]; @Hannaheboland
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