In a pre-close trading update for the six months to 31 May, St Modwen said that the business was continuing to perform well and results for the half year were expected be at the top end of management expectations, and ahead of consensus forecasts.
In the first half of the financial year, outline planning consent has been secured for:
- 1,373 homes on the 110 acre former MoD site at RAF Uxbridge
- 1,100 homes on a former MoD site in Mill Hill, North London
- Up to 500 homes at Long Marston near Stratford upon Avon
Detailed planning permission has also been submitted for 311 homes at Glan Llyn, Newport, South Wales, which is expected to be granted this month. The site has outline consent for up to 4,000 homes.
And compulsory purchase order issues have been resolved at Coed Darcy, Neath, South Wales, confirming an increased outline consent for the development of up to 4,000 homes.
In joint venture with Persimmon, St Modwen has:
- Received the first land payment for 314 homes at the former Goodyear site in Wolverhampton. The site, which has an anticipated end value of £50 million, is now being developed, with the first homes expected to be released for sale in late summer this year.
- Submitted detailed planning applications for the development of 212 homes in Sunderland, as well as the 311 homes at Glan Llyn referred to above.
The JV is expected to move forward with a further four planning applications during 2011 and have five active sites by the end of the financial year.
Residential land has been sold at Bentley Priory and sales have been agreed at or above book value at Coombs Wood in the West Midlands, Newton-le Willows in Lancashire and Newport in Shropshire. During the past six months, £42m was made in land sales.
The retail sector is also proving to be fertile ground. Contracts have been exchanged for the pre-sale of an 85,000 sq ft Sainsbury’s foodstore at Longbridge, an 85,000 sq ft Tesco’s foodstore at Hednesford, Staffordshire and a Travelodge hotel at Edmonton. All three developments will start in the next six months.
Site work has already started on a 25,000 sq ft casino in Birchley, West Midlands and 27,000 sq ft of office facilities for Viridor in Taunton. Regeneration of the Elephant and Castle centre in London has also started.
Chief executive Bill Oliver said: “In the first half of the year St. Modwen has continued to build momentum across all areas of the business and, as a consequence, we expect our interim results to be at the top end of our expectations, both in terms of profit and net asset value growth. Our regional network of offices, skilled development and asset management teams, unique land bank and strong forward position of pre-lets and pre-sales give us continued confidence in both the results for the current financial year and our future growth.”
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