St Modwen remains confident
St Modwen Properties expects positive results for the third quarter of 2010. In an interim statement to the Stock Exchange, the Birmingham-based regeneration specialist says it expects to overcome occupier market weakness through its diverse portfolio.
The company revealed its asset management continues apace, with more than 200 lettings and renewals of almost one million sq ft in the year to date. Its gross rent roll now stands at £45.9m per year, up from £43m in November 2009.
It has also completed a number of disposals totalling 29 acres of residential land and generating £40.5m.
Meanwhile, the company completed the purchase of an 11-site portfolio of industrial estates for £21.4m. With a rental income of £2.2m, this represents a net initial yield of 10.3 per cent.
The company said: "Whilst the outlook for commercial property remains uncertain, currently St Modwen is not experiencing deteriorating market conditions.
"We are pleased with our strong performance on asset management; not only has it enabled us to maintain occupancy and rental levels but, together with our expectation of marshalling gains from within the hopper, gives us confidence in the out turn for the year."
