St Modwen builds 10m sq ft logistics pipeline

Aaron Morby 4 years ago
Share

Developer St Modwen has accelerated its disposal programme of retail and student homes assets as it refocuses its development arm on logistics and industrial schemes.

Chief executive Mark Allan is focuses on warehouse and housing development
Chief executive Mark Allan is focuses on warehouse and housing development

Unveiling half-year results this morning, the developer said it had established a long-term pipeline of sites that will deliver up to 10m sq ft of space, subject to planning.

Mark Allan, chief executive said: “We continued to prepare our pipeline in line with our objective to grow industrial/logistics development activity by up to 25% per year by 2020.”

He said that since revealing the new strategy a year ago, St Modwen had sold £635m of assets, improving its portfolio mix, reducing borrowings, and accelerating delivery of a substantial industrial/logistics and regional house building pipeline.

During the half-year St Modwen gained outline planning consent for a 1m sq ft scheme at Chippenham Gateway, next to junction 17 of the M4, and cleared planning conditions and finalised consents for a 0.2m sq ft scheme at Copthorne, Gatwick, adjacent to junction 10 of the M23.

St. Modwen Homes continued to see strong growth. The volume of units sold in the first six months increased 31% to 302 units (2017: 230 units).

Looking beyond 2018, Allan said that St Modwen Homes planned to deliver up to 25% growth in new home volumes per year over 2019-2021.

“We have started to roll out initiatives to improve our operating margin by c. 2-3ppt over the medium term, in part through optimising site coverage, but also due to improved efficiency from scale benefits and a range of other initiatives,” he added.

Latest news

Eight contractors trailblaze concrete carbon reduction plan

Firms pledge to switch to 30% low emission concrete by 2025
9 hours ago

Six locations shortlisted for Great British Railways HQ

Site for national HQ narrows to Birmingham, Crewe, Derby, Doncaster, Newcastle and York
14 hours ago

Kit maker Genie fined after M25 work platform death fall

Court hears how calibration error led to death of worker when 40 metre high mobile elevating work platform collapsed
20 hours ago

O’Connor Utilities sold to private equity

OCU Group reported to have fetched around £400m
2 days ago

Rolls-Royce shortlists sites for first SMR factory

Three factories will make reactor, civils and MEP modules for SMR nuclear power stations
21 hours ago

£233m loan kick starts £3.5bn regen of Royal Docks site

Infrastructure loan paves way for 6,000-home East London Silvertown scheme
20 hours ago

Henry Construction wins £33m Oxford housing estate rebuild

Contractor signs off first deal with A2Dominion
21 hours ago

Carillion collapse hospital hit by more construction delays

Balfour will take another 18 months to complete Midland Met scheme
2 days ago

Leeds college launches new construction and football course

Students can now combine site and tech skills with learning at a football academy
21 hours ago

Willmott Dixon blasts new Building Safety law

Rick Willmott accuses Government of scapegoating construction over its own regulatory failure
2 days ago

£550m plan to redevelop The Galleries centre in Bristol

Shopping centre building to be demolished for major mixed-use scheme
2 days ago

Costain cancels supply chain event on £260m road job

Preparation work for A1 upgrade stalls as Transport Secretary dithers over approval
2 days ago

£170m London Holborn Circus office approved

Demolition work set to start in the autumn for 10-storey office block
2 days ago

City leaders launch net zero construction skills drive

City of London leader warns "skills gap and labour shortage are threats to our net zero ambitions"
2 days ago

Marlborough Highways lands £32m Islington civils deal

Contractor to help with north London borough's green drive
2 days ago

Osborne makes £45m construction loss

Sale of infrastructure business balances books as contractor looks for zero-carbon wins
5 days ago

John F Hunt forecasts record revenue and profits this year

Demolition contractor back on strong financial footing after previously setting aside £5.6m for bid rigging probe
5 days ago

Notting Hill Genesis names £2.8bn framework winners

26 firms land places on main contractor deal: Full list
5 days ago

Green light for dual hotel scheme at Nine Elms

Two new hotel towers will share common basement
5 days ago

Trials start on cement-free pre-cast piles

Aarsleff is hopeful a product will come to the market shortly
5 days ago

Ex-Telford Homes boss to run green house builder

Jon Di-Stefano takes helm at M&G backed Greencore Construction
5 days ago

Subcontractors told to stop work on Brymor sites

£80m revenue southern contractor files letter of intent to enter administration
6 days ago

House builder Chartway sold to private equity firm

Cabot Square Capital signs another major construction deal
6 days ago

Murphy Group appoints new chairman

Capita chairman and investment banker John Cresswell to start in November
6 days ago

Tolent seals £40m Newcastle ‘future-living’ housing job

135-home Vaux scheme will be first of four neighbourhoods totalling 1,000 homes
6 days ago

Cruden takes first job at £1.3bn Edinburgh Waterfront scheme

Preferred bidder named for first 750 net zero homes at new Granton Waterfront coastal town
6 days ago

Trio of student towers to be built at Brent Cross Town

Ground works under way with main contractor due to be appointed next month
6 days ago

Keltbray gets start date for £50m motorway upgrade

Contractor hails "significant step forward" for highways business
7 days ago

Site workers settle for 5% pay increase

Contractors and unions agree one-year deal following months of talks
1 week ago

Rising wages and skills gap to overshadow materials issues

Materials and product Inflation tops 20% so far this year, but labour set to be next big headache
7 days ago

Contractor services