Property developer St Modwen (SMP) delivered an upbeat outlook at its annual meeting. The group continues to recycle capital by selling assets and using the proceeds for fresh acquisitions. And in the period from 1 December last year to 22 March, it raised £39m by selling mature assets at or above book value.
Demand for residential land from housebuilders remains brisk, and sales during the period raised £41m, all at or above book value. St Modwen has also developed its income-producing portfolio, and since November 2014 the annualised gross rent roll has risen from £45m to £60m.
Further sites within the portfolio have been targeted for private rented sector development. Construction work is expected to start shortly on 201 apartments at a 110-acre site at St Andrew's Park in Uxbridge.
Worries about the company's exposure to inner London residential appear to have been overdone. Its joint venture at New Covent Garden Market is expected to achieve vacant possession by spring next year, and St Modwen intends to sell, or develop it itself or through a joint venture.
