St Modwen reports good progress as first homes go on sale

Regeneration specialist St Modwen Properties has signed development agreements for more than 500 homes over two sites, the firm said today.

The firm said it has completed the development agreements and received the first land payments at its 311 home Glan Llyn development, in Newport, South Wales, where construction has commenced, and a second 212-home scheme in Sunderland.

Detailed planning applications have been lodged for developments at Coed Darcy, Swansea (300 homes) and Longbridge in Birmingham (229 homes), and construction will begin in early 2012.  

Development has also begun at the former Goodyear site in Wolverhampton, where St Modwen and housebuilder Persimmon are building 314 new homes as part of a £150m mixed use redevelopment.  

In a trading update the firm said it was realising an increased proportion of the value in its land assets by building out residential schemes, both in joint ventures with partners and through its housing arm, St Modwen Homes.

It said the first St Modwen Homes site, for 115 homes at Park View at Longbridge in Birmingham, has attracted a positive initial response since it launched at the end of August. The company expects to begin marketing its second St Modwen Homes site at Locking Parklands, Weston-super-mare, later in the autumn.

St Modwen said its existing commercial schemes at Edmonton, Walsall, Birchley, Longbridge (MyPlace) and Taunton are progressing well. The firm has also commenced construction of a new 135,000ft² production facility for Siemens in Lincoln.

Rental and occupancy levels have remained constant in the company’s income-producing properties, and the firm has completed over 150 new lettings during this financial year.

Bill Oliver, chief executive of St Modwen said: “We continue to make good progress in the year to date.  Even in this challenging market, we have been able to drive income throughout our portfolio and I am particularly encouraged by the continued resilience of our retail assets. We have made further valuation gains within our development portfolio through active management initiatives and particularly by progressing sites through the planning process in London and across the UK. 

“Demand for developable residential land remains robust and we continue to make further excellent progress in our residential development programme, both through St Modwen Homes, where we have been encouraged by initial demand, and our joint ventures.

“Our track record of delivery, strong asset management skills and ability to secure new projects, either on our own behalf or in partnership, give us continued confidence in both the prospects for the current financial year and of continued growth in 2012.”