St Modwen buoyed by demand in South-East

Demand for new homes in London and the South-East and two of London’s largest development projects — Elephant & Castle and New Covent Garden Market — have helped to boost property developer St Modwen.

St Modwen’s chief executive Bill Oliver said foreign investment is making its way over here and, despite a difficult property market, the “mood is slightly more optimistic at the moment.”

St Modwen, which specialises in long-term, complicated development projects such as the scheme at Longbridge on the former MG Rover site in the Midlands, (pictured) reported a rise in net asset value per share of 5% to 244p in the six months to May 31.

The firm which, with French construction group Vinci, has been chosen to lead the £2 billion redevelopment of London’s New Covent Garden Market, said revenue for the period rose to £81 million, up from £61.3 million a year ago.

As well as securing the New Covent Garden Market project this year, and the Elephant & Castle shopping centre scheme which is now being brought forward after years of delay, it said its housebuilding business — both in joint venture with Persimmon and its own housebuilding arm — is performing well with initial sales rates for the past six months at St Modwen Homes 120% more than the national average.