Property firm St Modwen sees big year
PROPERTY regeneration company St Modwen expects its full-year results to buck the economic downturn, coming in at the upper end of forecasts.
The company, which owns the Elephant and Castle and Edmonton Green shopping centres in London, said in a trading update that sales and buyer interest in its new sites have both been high, and there has been good interest in buying land.
St Modwen expects improvements on 2010 in rental income, profits before tax and trading profits, and said results will include £20m in realised profit from development activities.
Chief executive Bill Oliver said: “We expect to report a strong performance this year, in spite of challenging market conditions.
“Demand for residential land remains robust, and we have made excellent progress in our housing development programme.”
The group has also agreed an extension until 2014 of its £119m credit facilities with lenders Lloyds and Barclays.
Analysts at broker Numis said: “The extension of group finance facilities should remove a key plank of the risk profile for the group.”
The firm has begun development on several major projects for 2012, including two 85,000 sq ft supermarkets for Sainsbury’s and Tesco.