St Modwen warns of slowdown in property values

Property developer, St Modwen, has warned of a slowing growth in its properties’ values.

The company, which develops brownfield sites, has become the latest in a long line of developers warning about the effects of turmoil in Britain’s property investment market this year.

Pre-tax profits increased 3% to £100 million in the 12 months to 30 November and the group will pay a total dividend of 11.7p, up 15% compared with a year ago.

Chairman Anthony Glossop said there will no doubt be some further deterioration in the market value of investment properties, particularly in the first 6 months of this year and we cannot be immune from the effects of that.

Mr Glossop added that overall the year will see growth in the company’s net asset value, albeit at a lower level than in the past and we would expect to maintain our recent pattern of dividend growth.

The company is focusing on being a redevelopment specialist, taking on decrepit town centres and properties and modernising them. It owns the Elephant & Castle shopping centre identified for major development.

Other sites earmarked for development include Rover’s Longbridge factory, being partly redeveloped into shops and offices and the redevelopment of Brighton’s West Pier.

Story link: St Modwen warns of slowdown in property values