St Modwen agrees sale of 27 per cent of retail portfolio
St Modwen has agreed the disposal of two retail assets in Longbridge, Birmingham and Wembley, London via two separate transactions. The two assets made up 27 per cent of the company’s retail property portfolio by value as of November 2017. On average, the sale prices show a 4 per cent discount to the latest book value.
Firstly, St. Modwen has exchanged contracts to sell the 220,000-sq ft Longbridge shopping park in Birmingham to Columbia Threadneedle Investments on behalf of Zurich Assurance Limited for £53.6m, reflecting a 6.0 per cent initial yield. The park includes a 150,000-sq ft Marks & Spencer, with further units let to a range of occupiers, including Smyths Toys, Boots, Poundland, Mountain Warehouse, Holland & Barrett, Carphone Warehouse and Specsavers.
Secondly, St Modwen has exchanged contracts to sell Wembley Central in London, which comprises an 118,000-sq ft shopping centre and 86-bed Travelodge.
Chief executive Mark Allan said: “These disposals are in line with our strategic objective to increase our portfolio focus on assets with better structural growth characteristics and our intention to sell £100-150m of retail and small assets during 2018. We plan to use the capital we release via these sales to bring forward future phases of Longbridge and accelerate the delivery of our 7.5 million sq ft near-term industrial/logistics development pipeline.”