# St. Modwen (LON: SMP) sells half of remaining non-core retail assets for £34m

- Link: https://www.directorstalkinterviews.com/st-modwen-lon-smp-sells-half-of-remaining-non-core-retail-assets-for-34m/412799299
- Published: 2019-11-28T07:33:22+00:00
- Author: Giles Arbor

**St. Modwen Properties plc** (LON: SMP) has completed the sale of three retail 
assets in Doncaster, Crosby and Kirkby for a combined consideration of £34m, representing
just over half of the company’s remaining non-core retail portfolio as at May 2019.

The assets were sold via three separate transactions. The aggregate consideration
of £34m represents a discount of 9% compared to the May 2019 book value of the three
assets.

These disposals follow the sale of £177m of non-core retail assets during 2018 at
an average discount to book value of less than 1%. As a result, St. Modwen’s residual
non-core retail assets now account for only 2% of its portfolio, down from 16% at
the start of 2018.

> **Mark Allan, CEO of St. Modwen, commented: **
> “Continuing our targeted approach to capital recycling, proceeds from these latest
> non-core disposals will be reinvested into our substantial industrial and logistics
> pipeline, which could deliver over 15m sq ft of new space over time. With a yield
> on cost of c. 8% and a yield on incremental capex of c. 9%, delivery of this pipeline
> is expected to drive meaningful development upside and significant growth in income.”

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