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St Modwen acquires 150 acre site from Ministry of Defence

The remaining 150-acres of the former Ministry of Defence Central Vehicle Storage Depot at Hilton in Derbyshire has been acquired by St Modwen Ventures Ltd, an investment subsidiary of St Modwen Properties PLC.

St Modwen has been the MoD’s development partner at Hilton for more than eight years and agreed to acquire the outstanding land on the original 278-acres site when Defence Estates wanted to achieve a single final disposal.

Some 70 acres of the land acquired, on which there are more than 500,000 sq ft of buildings, will be managed to generate income with the potential of redevelopment for employment purposes. Thirty acres will be sold for residential development and the remaining space will be used for infrastructure landscaping and community use.

Richard Yates of Defence Estates said: “The partnership between the MoD and St Modwen has proved very successful through the generation of short-term income and residential land sales. MoD has received a far greater return from the joint venture than would otherwise have been achieved from an outright sale at the outset.”

Peter Robbins, a director of St Modwen, said: “We have had a very positive relationship with the Defence Estates throughout our joint venture and are very pleased that right to the end we have managed to add significant value for the benefit of both parties.” DTZ Debenham Tie Leung acted for the MoD. St Modwen represented itself.

Over the past eight years St Modwen has generated more than £1 million of rental income annually from letting the existing buildings at Hilton. During that time it has disposed of 72 acres of residential land to national house builders who have to date developed some 700 homes as a natural extension to the village of Hilton. The site includes 90 acres of employment land, and development has included new roads, a neighbourhood centre containing a 3,000 sq ft supermarket, and educational, leisure and community facilities.

For further information contact Peter Robbins of St Modwen on 0121-456-2800. Issued by Paul Raymer of Howle Chapman Raymer (0121-236-7771).