Following its recently completed acquisition of a 2,500 acre portfolio of disused BP sites across the UK,
St. Modwen, the UK’s leading regeneration specialist, has acquired another 60 acres of strategic development land in the South West and Yorkshire, bringing the developer’s national land bank to over 9,500 acres (gross).
Situated in Weston-super-Mare, the South West site comprises 26 acres and was acquired from Gresham (GP) Limited backed by Schroders for £3.4 million, reflecting a net initial yield of 13%. It currently accommodates ‘Westland Distribution Park’, an industrial scheme including circa eight acres of open storage land and 335,000 sq ft of distribution and production facilities, occupied by nine businesses including Countrywide Farmers, Biffa Waste Services and Smurfit Kappa.
The latest Yorkshire site, located close to Doncaster Town Centre extends over 27 acres and was acquired from RREEF Real Estate for £3 million. To be known as ‘Parklands Industrial Estate’ it comprises 600,000 sq ft of existing buildings including a 250,000 sq ft warehouse and a 350,000 sq ft production building.
In the short term, St. Modwen will continue to lease the existing commercial accommodation on both sites for income before confirming longer term development plans that could see the sites redeveloped into industrial and office developments.
Bill Oliver, Chief Executive, St. Modwen says:
“These are classic St. Modwen sites, offering excellent long term development potential whilst situated in areas where there is already good value-driven demand for the existing space, enabling us to maximise the income in the short term.
“These deals illustrate that we are now seeing real value in the acquisitions market. They also confirm that, regardless of the recession, we are in a good position to acquire land and can continue to build on our presence nationally; seizing the opportunity to bolster our medium term development position.”