St Modwen sells £82m of retail assets
Real estate investment outfit St Modwen Properties disposed of three retail assets on Thursday, collecting more than 3% above the properties' book value in the process.
FTSE 250
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Real Estate Investment & Services
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St. Modwen Properties
559.00p
16:44 06/08/21
In addition to exchanging contracts for the sale of its long leasehold interest in the 495,000 square foot Edmonton Green shopping centre for a total cash consideration of £72m, St Modwen also completed the sale of two smaller retail assets in Liverpool and Cannock for a total of £9.9m, 6% above the combined book value of the assets as of November 2017.
Property director Rupert Wood, said: "These disposals are in line with our strategic objective to refocus our portfolio towards assets with strong structural growth characteristics. Since the start of this year, we have sold £177m of retail assets, on average less than 1% below book value, representing more than half of our overall retail portfolio."
While the FTSE 250 constituent warned the disposals would create a reduction in its short-term rental income, funnelling the sale proceeds into its "much higher yielding" industrial and logistics pipeline was expected to lead to a "marked increase" in the group's longer-term income.
As of 1120 GMT, St Modwen shares had slipped 1.45% to 380.40p.