News Archive

AGM Statement 1998

At the Company’s Annual General Meeting held today in London, Stan Clarke, Chairman of St. Modwen Properties PLC, was in confident mood and informed shareholders of the real progress made during the year to date, following the record year in 1998.

He was delighted to tell shareholders that the current year has started well with good progress being made in the core areas of St. Modwen’s business, and to report that development profits secured and contracted for were already at a greater level than that achieved in the whole of the record year in 1998.

The most significant areas of activity since the start of the current financial year in December have been as follows:

* Development and investment sales of approximately £30m have already been achieved this year. Investment sales were completed at Tipton, Leamington Spa, Plymouth, Long Eaton, Burton and Coventry, as part of the active management of St. Modwen’s portfolio, and the 140,000 sq.ft national call centre at Pride Park, Derby, occupied by Prudential Banking was also sold.

Some 1,500 people will eventually be employed at Prudential Banking’s headquarters and they have an option to occupy a further 120,000 sq.ft on an adjoining site owned by St. Modwen.

* The successful brownfield strategy continues to progress and one of the UK’s largest brownfield development sites has been assembled and infrastructured following the acquisition of an additional 152 acres at the former Hem Heath Colliery, adjacent to the Company’s existing Trentham Lakes sites. Plans to develop up to 3m sq.ft of industrial and distribution space on the entire site (which extends to 400 acres) are well advanced with major new factories and office space under construction, together with a 123 bedroom Holiday Inn Express hotel and a Harvester restaurant.

* The Report and Accounts identified the regeneration of tired shopping centres as being one of St. Modwen’s core skills. Since the year-end the Company has secured the Road Closure Order which enables the re-development of the 350,000 sq.ft Wythenshawe Town Centre scheme, Greater Manchester, to go ahead. Work has already begun on a new market and market hall and the creation of new retail space which is substantially pre-let.

At Tipton, West Midlands, work has also commenced on the re-development of the main shopping centre. The re-development includes a new 10,000 sq.ft Co-op foodstore, ten new shops, 3,500 sq.ft of new offices, a new library and public toilets. When completed the scheme will provide a 50,000 sq.ft district centre with a rent roll in excess of £300,000 p.a.

The acquisition of a strategically important business and office park site in the West Midlands at Quinton (near Junction 3 of the M5) was completed and will enhance the future planned development programme.

* Letting activity has continued strongly with new lettings producing an additional £600,000 of income. This supports the Company’s plans to increase net asset value and provide shareholders with a progressive dividend.

Commenting at the AGM, Stan Clarke said:

“The range of activities undertaken by St. Modwen add up to a strong start to the new financial year. I am very confident of a successful outcome for 1999.”