St Modwen sell 3 retail assets for £34m

St Modwen properties said it had sold three retail assets in Doncaster, Crosby and Kirkby for a combined £34m, representing just over half of the company's remaining non-core retail portfolio as at May 2019.

The assets were sold in three separate deals and the sale amount represented a discount of 9% compared to the May book value.

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%, St Modwen said on Thursday.

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, the company said.

Chief executive Mark Allan said the cash would 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 8% and a yield on incremental capital expenditure of 9%, delivery of this pipeline is expected to drive meaningful development upside and significant growth in income."