St Modwen Properties is believed to have been appointed preferred developer for the 70-acre Jaguar site off the A46 near Coventry. It is planning a warehouse and office development there.
Yesterday St Modwen combined bumper results for 2005 with a note of caution about its chances of repeating that performance this year regarding the wider economy.
St Modwen pushed the value of its net assets 24p higher in the year to November to 273.7p for a total return of 19.7 per cent on its fixed assets - and one of 28.6 per cent on its shareholders' funds.
Its self-imposed target is to double its fixed assets every five years - with an average return on fixed assets of 15 per cent, exceeded in five of the last six year.
Presenting yesterday's results, Bill Oliver, St Modwen's chief executive, said it might be returning towards the 15 per cent trend this year.
This was largely because the buoyant market for investment property has made it difficult to buy sites for development which provide an income from the outset. From next week, St Modwen will also lose at least £3 million of the £5 million a year rent which the administrative receiver of MG Rover has been paying for the Longbridge site.
Last year St Modwen's profit rose 15 per cent to £46.3 million and a final dividend of 5.9p gives shareholders an increase of 16 per cent for the year.
The shares slipped 1.2p to 4723.4p , where they yield 1.9 per cent.
Looking ahead, Anthony Glossop, chairman, said: "We have once again, had a good start to the year, with transactions already completed or agreements for lease exchanged that will provide future investment sales which should give rise to good property profits in excess of £16 million.
"The investment property market remains very strong and the occupational market, although variable, offers opportunities for an active developer.
"The general economic climate is perhaps more uncertain than for some time, but nonetheless, I am looking forward with confidence to another year of progress."
Mr Oliver reported that St Modwen had obtained planning permission to build a one million square feet warehousing complex on the site of the former Alstom/Metro-Cammell factory at Washwood Heath, Birmingham.
It is also expanding its office development at Quinton Business Park, where it has now established its own headquarters.
In Walsall, it is undertaking a big developments including a 118,000 Asda superstore in St Matthews quarter. This could include more than 150 apartments, but St Modwen is hesitant about demand for them and is planning only 41.
"The Government wants people to be where they work," Mr Oliver commented. "We could get planning for a couple of hundred in Walsall. The question is whether there is value in it."
St Modwen has not been left with unsold apartments in any of its developments, he stressed - "We tend to pre-sell them."
The future of the Silver-stone motor racing circuit hangs on a meeting next week of its owner, the British Racing Drivers' Club.
St Modwen, as preferred developer of the site, has proposed a plan to develop 100 acres and pay the BRC £30 million, which it could spend to improve the circuit by the deadline of 2009 if it is to keep the British Grand Prix. Shares closed up 13.4p at 475p.