St Modwen profits soar on New Covent Garden green light

The developer of the £3 billion New Covent Garden Market site in Nine Elms could cash in on the first phase of the scheme this year after winning planning permission last April.

Approval of St Modwen’s plans for the UK’s largest market for wholesale fruit, vegetables and flowers helped the company almost double profits to £258.4 million in the year to October as the value of the site soared in response.

Chief executive Bill Oliver said work on a new home for the flower market will be completed by January next year.

That will allow the firm vacant possession of the market building, a 10-acre site due to house 1821 apartments.

“We will explore our options to either sell, joint-venture or develop the site during 2016,” he said.

The new flats could fetch an average of £1 million each and two further stages are planned over the next decade, bringing the total to 3000 homes and 600 affordable apartments.

Oliver, leaving as chief executive in November after 13 years, said he was encouraged by the weight of money coming in from overseas into the London land market.