Strategy

Our strategy is intended to improve our returns on capital by concentrating our activities on sectors that have long-term structural growth characteristics while also enhancing our flexibility through tightly controlling leverage and reducing the proportion of our portfolio invested in land.

This is captured through our three key strategic objectives:

  • Build a high quality industrial and logistics business
  • Grow our residential and housebuilding business
  • Leverage our regeneration reputation

Build a high quality industrial and logistics business

  • c. 19m sq ft of industrial and logistics space to deliver in the long term
  • Retain the majority of our industrial/logistics pipeline

2019 progress: full year ended 30th November 2019

  • Grown industrial and logistics exposure to 44% of total portfolio by value (2018: 33%), driven by successful developments and underlying growth
  • Delivered 0.9m sq ft of new space of which 97% will be retained (2018: 0.9m sq ft and 69%)
  • Increased committed industrial/logistics pipeline from 1.0m sq ft to 1.5m sq ft since the start of 2018
  • Obtained consent for 2.1m sq ft of new developments, taking total consented future pipeline to 8.1m sq ft
  • Prepared our pipeline for further growth; c. 19m sq ft, 45% of which already has planning with an associated ERV of c. £56m, providing substantial medium- and longer-term growth potential.

Grow our residential and housebuilding business

  • Own land bank comprises c. 17,500 residential plots
  • Visibility to grow St. Modwen Homes volumes by up to 20% per annum

2019 progress: full year ended 30th November 2019

  • Delivered 25% growth in St. Modwen Homes’ volumes with 1,060 units sold (2018: 848 units)
  • Grew St. Modwen Homes’ operating margin to 14.8% (2018: 14.4%)
  • Forward sold 34% of targeted private sale units for the year (Feb 2019: 34.6%), highlighting strong trading activity
  • Sold 896 residential plots to third-party housebuilers during the year for £30m
  • Agreed the sale of 663 residential plots at two large sites in South Wales for £25m since the year-end, with c. 900 plots across both sites in advanced legal discussions

Leverage our regeneration reputation

  • Deliver on our existing major regeneration projects
  • Unlock the next generation of regeneration schemes

2019 progress: full year ended 30th November 2019

  • Enhancing the Longbridge vision ahead of employment-led next phase
  • Prepared next phases of development at Longbridge for start on site in 2020
  • Delivered latest phase of development at Swansea Bay Campus and progressed longer-term mixed-use opportunities
  • Continued to progress early stage discussions on other long-term, mixed-use urban regeneration opportunities in our portfolio, including Wythenshawe, Manchester