The listed company behind the £70 million regeneration of Longbridge has announced a confident interim trading update.
Birmingham based St. Modwen Properties said the business has performed well since the half year statement issued on July 3.
Construction work on the first phase of the new Longbridge town centre includes an 80,000 sq ft Sainsbury’s supermarket, a 75-bedroom Premier Inn and Beefeater Grill, 24 shops and a number of restaurants.
Of this space, more than 70 per cent is now pre-sold, pre-let or under offer.
St Modwen has submitted a planning application for the second phase of the project which includes a 135,000 sq ft anchor retail store and car park, which it said will create up to 200 jobs.
Bill Oliver, chief executive of St. Modwen, said: “The ongoing outperformance of the business, driven by a robust business model, underlines the group’s belief that we will continue to grow in 2012 and beyond.
“Our active asset management capabilities, combined with our portfolio of major project opportunities, give us confidence that our results will meet our expectations for the year.”
The company update read: “The revenue stream arising from our residential portfolio and major projects is experiencing strong growth and as a result of our regional teams’ intensive asset management capability, our net rental income continues to more than cover the running costs of the business.
“Consequently, our profit outlook for the full year remains unchanged, building on the very strong results produced in the first half of 2012.
“Our pipeline of property development profits is now secure for 2012 and is expected to deliver profits ahead of those achieved by this part of the business in 2011.”
