St Modwen chief executive Mark Allan says the company is continuing its beds and sheds focus after its restructure earlier in the year and is working its way through £100m of disposals.
In a trading update to 30 November, the company said it had made two major acquisitions at Kingsgrove in Wantage, Berskhire, where it plans to develop 1,500 homes, and Buckover Garden Village in Gloucestershire, which could accommodate up to 3,000 homes.
Allan said: “[We] have made solid progress in terms of accelerating delivery and focusing activity towards the higher-performing industrial and logistics sector and our St Modwen Homes business, both of which are experiencing excellent growth.”
Allan said the money from its £470m disposal of Nine Elms Square, held in a 50:50 partnership with Vinci, would be used to reduce group borrowings as well as fund ongoing development activity.
Allan said it would continue to recycle and rationalise its portfolio and evaluate which assets to prepare for sale in the first half of 2018 from the £100m it said it would sell earlier this year.
“Our newly established asset management team has made good progress on the disposal of these assets with over £20m of this portfolio now sold, representing approximately £500,000 rental income,” he said.
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