St Modwen studies Longbridge options

THE failure of MG Rover offers the opportunity for a significant and sustainable regeneration to underpin the future of that part of the West Midlands, Anthony Glossop chairman of St Modwen, the property group that owns most of the Longbridge factory site, said today.

He told shareholders at St Modwen's annual meeting: 'The short-term position is uncertain until the administrator is further advanced with his work and is in a position to confirm whether he has any long-term requirement for any part of the site in his attempts to secure purchasers for any part of MG Rover's business. We will then be able to agree with him what part of the site comes back to us and on what timescale.'

St Modwen bought the larger part of the Longbridge site, 403 acres, for £57.5m in 2003 and 2004. It then agreed a leaseback deal to MG Rover at an annual rental of £5m.

Glossop said the rent had been paid up to the end of June but he admitted that in the short term the site would suffer 'some loss of income'. He said St Modwen was working alongside the regional development agency, Advantage West Midland, which owns the rest of the land at and around Longbridge. Together they hold 330 acres of 'developable land in a prominent position in south Birmingham well connected to the motorway network'.

Glossop said St Modwen and Advantage would hold discussions with local authorities as to the likely development situation. The two last month won planning consent for a technology park on a 40-acre site owned by Advantage.

Prime Minister Tony Blair has already pledged Government funding of £40m to build an industrial park in the area. Birmingham council has said that at least £50m will be pumped into a rundown housing estate, Egg Hill, to provide new housing and improved local amenities.