St Modwen has sold a chunk of its non-core retail portfolio for a total of £34m, as it continues to shift its focus to the industrial sector.
The sales, in Doncaster, Crosby and Kirkby, were sold at a discount of 9% compared to the May 2019 book value of the three assets.
The disposals follow the sale of £177m of non-core retail assets during 2018 at an average discount to book value of less than 1%. As a result, St Modwen’s residual non-core retail assets now account for only 2% of its portfolio, down from 16% at the start of 2018.
Mark Allan, chief executive of St Modwen, said: “Continuing our targeted approach to capital recycling, proceeds from these latest non-core disposals will be reinvested into our substantial industrial and logistics pipeline, which could deliver over 15m sq ft of new space over time. With a yield on cost of c. 8% and a yield on incremental capex of c. 9%, delivery of this pipeline is expected to drive meaningful development upside and significant growth in income.”
SMP : St Modwen continues industrial focus with £34m retail portfolio sales