St Modwen extends £120m loans
St Modwen Properties has secured an extension of £119m of existing facilities with Lloyds and Barclays to at least 2014.
Updating on trading this morning, the regeneration specialist said that it had extended a £100m loan with Lloyds until November 2014 and a £19m facility with Barclays until September 2015.
The extension means that all of the group’s £484m of debt extends until at least 2014, giving it a headroom of £130m against its expected year end debt position.
St Modwen said that it expected to report a strong set of results when it reports its full year trading figures, with profits ahead of 2010 and at the upper end of expectations. Results are expected to include realised profits in excess of £20m from development activities.
In its residential division, St Modwen said trading had continued to be strong since its interim results and that it was “confident that it is well positioned to generate significant value for the business in the coming years”
The group’s jv with housebuilder Persimmon has completed development agreements and received initial land payments on three sites during the course of 2011, with a combined agreed land value of more £27m, plus an entitlement to 50% of the profits on house sales.
A further five sites have been identified for 2012, with a land value in excess of £50m.
Chief executive Bill Oliver said: “We continue to drive income growth across our portfolio through the intensive active management of our existing properties and by progressing potential new opportunities. Demand for residential land remains robust, and we have made excellent progress in our housing development programme, both in joint venture with Persimmon and under our own housebuilding arm, St Modwen Homes.
“With a strong track record of delivery, regional and partnership expertise, strong asset management skills and the proven ability to secure new projects, we have confidence in our prospects for continued growth in the company for 2012 and beyond.”