ST MODWEN said in a trading update yesterday that profits remained in line with expectations, as it flagged its appointment to redevelop New Covent Garden Market in Nine Elms as “a significant contract win” for the firm.
The government revealed last week that the developer and French group Vinci had been picked as the preferred partners for the £2bn scheme, which analysts predict could reap significant profits for St Modwen.
Chief executive Bill Oliver said its residential business has continued to perform robustly, with a strong sales rate and good ongoing demand for land whilst its pipeline of projects also remains strong.
It is currently building pre-sold food stores for Sainsbury’s and Tesco in Longbridge and Cannock and a factory for Siemens in Lincoln.
St Modwen also announced earlier this week that it had completed the £135m refinancing of its Key Property Investments joint venture, a five year facility that extends until March 2017.
Oliver said: “While there will undoubtedly be challenges in the secondary property market, we remain confident in our proven business model and in our ability to add value to our portfolio through active asset management.”