StockMarketWire.com - St Modwen agreed to dispose two retail assets in Longbridge, Birmingham and Wembley, London via two separate transactions.
The two assets made up 27% of the company's retail property portfolio by value as of November 2017. On average, the combined consideration marks a 4% discount to the latest book value of the assets.
St Modwen exchanged contracts for the disposal of the 220,000 square foot Longbridge Shopping Park in Birmingham to Columbia Threadneedle Investments on behalf of Zurich Assurance for a cash consideration of £53.6m, reflecting a 6% initial yield.
The Shopping Park includes a 150,000 square foot Marks & Spencer, with further units let to a range of occupiers, including Smyths Toys, Boots, Poundland, Mountain Warehouse, Holland & Barrett, Carphone Warehouse and Specsavers.
The Shopping Park forms part of St Modwen's successful £1bn Longbridge regeneration project. This flagship long-term scheme is currently approximately 50% developed, and the company will now focus on bringing forward the significant development opportunities that remain on the 468-acre site.
The company exchanged contracts for the disposal of Wembley Central in London, which comprises an 118,000 square foot shopping centre and 86-bed Travelodge.
At 8:07am: [LON:SMP] St Modwen Properties PLC share price was +5.1p at 419.7p
Story provided by StockMarketWire.com
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