News Archive

Statement on MG Rover

St. Modwen Properties PLC is a property development and investment company concentrating on regeneration. It has four particular areas of specialism: town centre regeneration; partnering industry in its restructuring; renewal of brownfield land; and heritage restoration.

St. Modwen Properties PLC (“St Modwen”), a leading UK developer, expressed regret at the news that MG Rover Group has appointed PricewaterhouseCoopers (“PWC”) as receivers. St. Modwen acquired the larger part of MG Rover’s Longbridge plant, 403 acres in total, in two transactions in 2003 and in 2004. The company paid a total consideration of £57.5m for the site and the agreement made at the time was to lease it back to MG Rover for an annual aggregate rent of £5m.

St. Modwen is also the development partner of Advantage West Midlands (AWM) on the remaining 57 acres of the site which AWM acquired from MG Rover.

Anthony Glossop, Chairman of St. Modwen, said

“The MG Rover operation was always a potentially challenging project, and we are very sad that so much hard work by so many people has in the end not been rewarded with success. We created a flexible package which gave MG Rover every opportunity to re-shape its property holdings according to its business requirements.

In the short-term, the rent has been paid up to the end of June and we, as freeholder of the property, will be working with PWC to assist wherever we can. If PWC found a purchaser for the whole business or for parts of it, we would work with them to bring about the maximum viable retention of automotive activity at Longbridge.

If there is no viable automotive solution, or if a purchaser only requires part of the site, then it is positive that the site is in the hands of St Modwen, an experienced developer who knows it and the local market extremely well and is in a position to move quickly to help create alternative local employment opportunities. In that eventuality, we would work closely with Birmingham City Council, Bromsgrove District Council and AWM to put in place a regeneration strategy which would provide new business projects at the earliest possible opportunity.”

St. Modwen Properties PLC

Anthony Glossop, Chairman 0121 456 2800

Bill Oliver, Chief Executive

College Hill

Alex Sandberg 020 7457 2020

Dick Millard 07831 855 167