St. Modwen Properties PLC ST. MODWEN AGREES SALE OF 27% OF RETAIL PORTFOLIO (4315N)
09 May 2018 - 4:01PM
UK Regulatory
TIDMSMP
RNS Number : 4315N
St. Modwen Properties PLC
09 May 2018
Date of issue: 9 May 2018
ST. MODWEN PROPERTIES PLC
("St. Modwen" or the "Company")
ST. MODWEN AGREES SALE OF 27% OF RETAIL PORTFOLIO
St. Modwen has agreed the disposal of two retail assets in
Longbridge, Birmingham and Wembley, London via two separate
transactions. The two assets made up 27% of the Company's retail
property portfolio by value as of November 2017. On average, the
combined consideration marks a 4% discount to the latest book value
of the assets.
Firstly, St. Modwen has exchanged contracts for the disposal of
the 220,000 sq ft Longbridge Shopping Park in Birmingham to
Columbia Threadneedle Investments on behalf of Zurich Assurance
Limited for a cash consideration of GBP53.6 million, reflecting a
6.0% initial yield. The Shopping Park includes a 150,000 sq ft
Marks & Spencer, with further units let to a range of
occupiers, including Smyths Toys, Boots, Poundland, Mountain
Warehouse, Holland & Barrett, Carphone Warehouse and
Specsavers. The Shopping Park forms part of St. Modwen's successful
GBP1bn Longbridge regeneration project. This flagship long-term
scheme is currently approximately 50% developed, and the Company
will now focus on bringing forward the significant development
opportunities that remain on the 468-acre site.
Secondly, the Company has exchanged contracts for the disposal
of Wembley Central in London, which comprises an 118,000 sq ft
shopping centre and 86-bed Travelodge.
Mark Allan, Chief Executive, St. Modwen, said:
"These disposals are in line with our strategic objective to
increase our portfolio focus on assets with better structural
growth characteristics and our intention to sell GBP100-150 million
of retail and small assets during 2018. We plan to use the capital
we release via these sales to bring forward future phases of
Longbridge and accelerate the delivery of our 7.5 million sq ft
near-term industrial/logistics development pipeline. We intend to
retain the majority of the latter for the longer term, which with a
yield on incremental capex of circa 9% will deliver a marked income
pick-up relative to the average yield on these disposals."
- 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
LEI: 213800WMV4WVES8TQH05
Notes to Editors
Longbridge Shopping Park: the assets subject to this transaction
form part of the retail development of St. Modwen's GBP1bn
Longbridge regeneration project, which is aimed at delivering 1.3
million sq ft of mixed-use space and over 2,000 new homes across
the 468-acre site. The book value of the gross assets subject of
the transaction was GBP58.0 million as at 30 November 2017 and the
assets produced GBP2.1 million of net rental income during
2017.
St. Modwen Properties PLC: St. Modwen operates across the full
spectrum of the property industry from a network of regional
offices, a residential business and through joint ventures with
public sector and industry leading partners. The Company has an
outstanding 30-year track record of adding value by managing
schemes through the planning and infrastructure process and active
asset management and development. With extensive experience in
dealing with complex and challenging sites, St. Modwen has a land
bank of 6,000 developable acres and is focused on the long-term
development of commercial property and residential land. St.
Modwen's GBP1.7bn national portfolio of over 100 projects includes;
the regeneration of New Covent Garden Market, London; the
transformation of Longbridge, Birmingham and the on-going
regeneration of over 2,500 acres of former industrial land in South
Wales which includes the delivery of the first phase of Swansea
University's GBP450m Bay Campus.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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