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Nine Elms development provides boost for St Modwen

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Property developer St Modwen has seen nearly fourfold profits growth in the first half of the year.

Projects including New Covent Garden Market, Swansea University’s Bay Campus and the Longbridge development contributed to pre-tax profits reaching £177.6m for the six months to 31st May 2015 (2014 H1: £48.6m).

The New Covent Garden Market (NCGM) project, a joint venture with Vinci, achieved unconditional status in April and is now included on the balance sheet. Based on a forecast average sale price of £1,333 per sq ft for private residential, the project has contributed £128.0m to the half-year net valuation increase of £170.2m (H1 2014: £33.7m).

In Swansea, the initial phases of the Bay Campus, comprising a million square feet of research, innovation and education facilities and 899 student apartments, will be ready for the first students in September 2015. St Modwen has agreed with the university to manage the student apartments under its new 'St Modwen Student Living' brand, which is expected to provide £3m net rental income a year by the end of 2016.

Chief executive Bill Oliver said: "These record-breaking results are underpinned by the growth in the UK property sector and are testament to our continued belief in the regional marketplace and our long-term approach to regeneration as a whole. They are positively supported by our three major projects reaching significant milestones in the period. Most notably the New Covent Garden Market site in Nine Elms, London reached unconditional status in April.

"We continue to increase our levels of both residential and commercial development and to add further value to our major projects and our broader £1.5bn property portfolio, delivering maximum returns for the business and for our shareholders."

 

 

UK Construction News | The Construction Index

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