St. Modwen Properties PLC CONTRACTS EXCHANGED ON NINE ELMS SQUARE FOR £470M (7295I)
21 June 2017 - 7:48PM
UK Regulatory
TIDMSMP
RNS Number : 7295I
St. Modwen Properties PLC
21 June 2017
Date of issue: 21(st) June 2017
ST. MODWEN PROPERTIES PLC
("St. Modwen" or the "Company")
ST. MODWEN EXCHANGES CONTRACTS WITH WANDA HK FOR THE SALE OF
NINE ELMS SQUARE FOR GBP470M
St. Modwen Properties PLC today announces that VINCI St. Modwen
("VSM"), its 50/50 joint venture with VINCI plc, has exchanged
contracts for the sale of its interest in the 10-acre Nine Elms
Square site in Nine Elms, London to Wanda Commercial Properties
(Hong Kong) Co Ltd ("Wanda HK"), for a cash consideration totalling
GBP470m. Completion is expected to occur later in the summer,
following demolition of the former flower market.
Taking into account its stake in the joint venture and the joint
venture's contractual obligations to the Covent Garden Market
Authority ("CGMA"), St. Modwen expects its share of VSM's cash
proceeds after overage, enabling costs, and tax to be GBP190m upon
contractual completion, of which GBP70m will be held in a
restricted development account to fund its share of future
obligations in respect of completion of 500,000 sq ft of new
purpose built market facilities and associated infrastructure
(GBP140m in total for VSM).
The remaining proceeds will be used by St. Modwen to reduce
Group borrowings as well as fund ongoing development activity. The
Company expects to report an outcome for the transaction in line
with book value, which includes a full provision for its share of
future market construction obligations.
Following the sale and over the course of the next 10 years, VSM
will remain closely involved in the wider regeneration of the Nine
Elms area through its development agreement with CGMA which will
see it provide new market facilities for New Covent Garden Market
and in doing so, safe-guarding the existing 2,500 market jobs. As
the joint venture progresses with the delivery of the new market,
the remaining 10 acres of development land will be released in
phases for future transformation into three distinct character
areas; to be known as Nine Elms Gardens, Nine Elms Grove and
Thessaly Road that will feature a vibrant mix of residential,
commercial, retail and leisure uses.
VSM will have no involvement in the future development of the
Nine Elms Square site itself which will now be progressed by Wanda
HK.
Mark Allan, Chief Executive, St. Modwen Properties PLC,
said:
"The sale of Nine Elms Square is an important milestone, which
will realise the capital required to fund the construction of over
500,000 sq ft of new market facilities. It also crystallises a
significant element of the value we have been able to create on
this complex, inner London development site. Together with our
joint venture partner, VINCI plc, we remain very much committed to
the longer term regeneration of Nine Elms and are excited about the
opportunities ahead."
-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 stmodwen@fticonsulting.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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