ST MODWEN yesterday raised £49m in a share placing to help fund the £2bn regeneration of Britain’s biggest flower and vegetable market.
The developer and joint venture partner Vinci were chosen last year to redevelop New Covent Garden Market in Nine Elms on the South Bank.
The project will see the complete overhaul of the 57-acre site, including 550,000 square feet of new facilities to house the market’s 200 businesses and 2,500 staff.
In return for funding the construction of the market, St Modwen and Vinci gain 20 acres of surplus land on the site, which will then be developed to create 2,800 new homes as well as 115,000 sq ft of commercial and public space.
The placing will help to fund St Modwen’s £75m to £100m share of the costs of building the market.
St Modwen yesterday placed 20m new ordinary shares of 10p each, representing 9.99 per cent of the company’s overall share capital. The placing sent shares tumbling 10.5 per cent or 29.2p to 248.6p yesterday.