St Modwen says net asset value lifted by housebuilder demand

Kasmira Jefford
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REGENERATION SPECIALIST St Modwen yesterday said that a strong appetite for new homes, particularly in London and the South East, helped lift its net asset value (NAV) in the first half of the year.

Chief executive Bill Oliver said despite the on-going challenges in the economy it had delivered “a strong set of first half results.”

The group, which last month was selected as the preferred partner for the £2bn regeneration of New Covent Garden Market in Nine Elms, posted a six per cent increase in NAV to 264p a share, driven by £21.5m of net revaluation gains.

St Modwen said housebuilders’ demand for residential land had “gained momentum”. While London was the central focus, the group said there was interest for “well-located sites” across the UK.

In the period to 31 May it sold 103 acres of residential land for £146m. Its new housebuilding arm, St Modwen Homes, made 77 sales, with a further 145 exchanged or reserved.

Meanwhile St Modwen also said it expects to formalise plans for the long-awaited redevelopment of its Elephant and Castle shopping centre by the end of the year.

The firm said it aimed to be on site in 2015, with plans to more than double the size of its retail footprint to 450,000 square feet and build up to 1,000 apartments above the mall.