- St. Modwen Properties said had exchanged contracts for the disposal of a portfolio of 34 assets to Hansteen Holdings for £53.7m.

Adjusted for assets held in a joint venture, St. Modwen's share of the consideration was £47.3m, which compared to a book value for its share of the assets of £48.1m as of November 2017.

The portfolio comprised 1.4m square feet of lettable space, of which the majority was industrial use, let to over 200 tenants.

The assets were predominantly located in the Midlands and North West of England and had an overall vacancy rate of 6.1%.

The contracted rental income on the overall portfolio stood at £5.25m.

'This disposal is in line with St. Modwen's strategic objective to refocus our portfolio on fewer, larger assets with a target to sell £150-175m of retail and small assets during 2018,' chief executive Rupert Wood said.

'We have now exchanged contracts to sell £144m of these assets so far this year and, combined with previous disposals, we have now sold £76m of the around £100m of small assets earmarked for sale when we announced our new strategy just over a year ago.'

'As planned, we intend to reinvest the disposal proceeds into our industrial/logistics pipeline which, with a yield on incremental capex of around 9% and limited operating costs, is expected to deliver a marked pick-up in net rental income over the long term.'

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