St Modwen has signed a new 45 year lease on a 150,000 square foot flagship M&S store, which will be one of the largest in the UK for the national retailer.
The new store will anchor the second phase of the new Longbridge Town Centre for which St Modwen will shortly submit a revised planning application.
This latest application also includes proposals for 45,000 sq ft of additional retail units plus a surface and multi-storey car park. Subject to planning, construction of the second phase will start on site in mid-2014, with the new M&S store anticipated to open for trading by Christmas 2015. St Modwen completed the first phase of the town centre in August this year.
As announced on 2 December 2013, Key Properties Investments (KPI), a 50/50 joint venture between St Modwen and Salhia Real Estate Company KSC has sold the 327,000 sq ft Elephant and Castle retail, leisure and office complex to Delancey and APG for GBP80m in cash. The sale price achieved, reflecting a yield of 4.25 per cent, is significantly above the asset’s current book value. The proceeds will be used to reduce KPI’s debt.
Bill Oliver, chief executive of St. Modwen, says: “Our robust, proven business model and our pragmatic, hands-on approach to development and asset management have enabled us to perform consistently well throughout the year and build on the strong results produced in 2012.
“The two major transactions completed at Longbridge and Elephant & Castle exemplify these qualities. The disposal price achieved at Elephant & Castle not only highlights the increasing investor appetite for the type of assets we own but also demonstrates the benefits of our ability to generate excellent returns as a result of our strong asset management capabilities. In addition, in welcoming Marks & Spencer to Longbridge, we have shown how long-term, transformational regeneration projects can encourage investment and serve as true catalysts for change, as well as creating value for our shareholders.
“This activity, together with the growing sense of optimism in the commercial and, in particular, the residential marketplace points to a positive outlook for St Modwen, both in terms of profit and future net asset value growth.”