St. Modwen Properties PLC ST. MODWEN RELEASES £47M VIA SALE OF 34 ASSETS (8534W)
06 August 2018 - 4:00PM
UK Regulatory
TIDMSMP TIDMHSTN
RNS Number : 8534W
St. Modwen Properties PLC
06 August 2018
Date of issue: 6 August 2018
LEI: 213800WMV4WVES8TQH05
ST. MODWEN PROPERTIES PLC
("St. Modwen" or "the Company")
ST. MODWEN RELEASES GBP47M OF CAPITAL VIA SALE OF 34 ASSET
PORTFOLIO
St. Modwen has exchanged contracts for the disposal of a
portfolio of 34 assets to Hansteen Holdings PLC for a total cash
consideration of GBP53.7m. Adjusted for assets held in joint
venture, St. Modwen's share of the consideration is GBP47.3m, which
compares to a book value for its share of the assets of GBP48.1m as
of November 2017.
The portfolio comprises 1.4m sq ft of lettable space, of which
the majority is industrial use, let to over 200 tenants. The assets
are predominantly located in the Midlands and North West of England
and have an overall vacancy rate of 6.1%. The contracted rental
income on the overall portfolio stands at GBP5.25m. St. Modwen's
share of net rental income received on its share of the assets
during 2017 was GBP2.86m. The disposal is expected to complete
shortly.
Rupert Wood, Property Director - Asset Management, St. Modwen,
said:
"This disposal is in line with St. Modwen's strategic objective
to refocus our portfolio on fewer, larger assets with a target to
sell GBP150-175m of retail and small assets during 2018. We have
now exchanged contracts to sell GBP144m of these assets so far this
year and, combined with previous disposals, we have now sold GBP76m
of the c. GBP100m of small assets earmarked for sale when we
announced our new strategy just over a year ago. As planned, we
intend to reinvest the disposal proceeds into our
industrial/logistics pipeline which, with a yield on incremental
capex of c. 9% and limited operating costs, is expected to deliver
a marked pick-up in net rental income over the long term."
- 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
Notes to Editors
St. Modwen Properties PLC: St. Modwen is a different kind of
property partner, taking a different view. Thirty years' experience
as an expert developer and regeneration specialist, dealing with
complex and challenging sites, has taught us to look at things
differently, challenge the norm and create new and sustainable
solutions to benefit all those involved. Today, we continue to
unlock value and deliver quality outcomes across a wide range of
activities, from regeneration to the long-term planning and
development of commercial and residential assets, as well as active
asset management.
We combine end-to-end expertise - through our network of
regional offices, our residential business and our central asset
management team, and through joint ventures with public sector and
industry leading partners - to deliver lasting results for all
concerned. We create places where communities grow, businesses
flourish and people can feel and be at home.
St. Modwen's GBP1.5bn national portfolio of over 100 projects
includes the regeneration of New Covent Garden Market, London; the
transformation of Longbridge, Birmingham; and the on-going
development of the GBP450 million Bay Campus for Swansea
University. St. Modwen Homes is currently selling on 19 sites
across the country and our asset management team pro-actively
manages our GBP692 million income-producing portfolio.
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END
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