St Modwen sinks into the red as losses hit 93.8m
PROPERTY developer St Modwen yesterday sank into the red as it reported losses had quadrupled to £93.8m for the six months to the end of May.
The group, which owns the Elephant & Castle shopping centre, warned that it had seen no pick up in rental values in the commercial sector, but the residential market was beginning to show early signs of improvement.
St Modwen, which specialises in redeveloping towns and cities across Britain, said its net asset value has fallen by £80.9m to £321.3m (266p per share), a decline of 20.4 per cent since 30 November 2008, amidst adverse market conditions.
The group warned it expects some further reduction in values, principally due to the worsening climate for occupiers, and a consequent slowing of demand for new space, and increasing pressures on rental levels.
The regeneration specialist, which tapped investors for £102m in May, has scrapped its interim dividend to conserve cash and wiped £68.6m off the value of its portfolio. Chief executive Bill Oliver said he expects further write downs of the estate in November, as pressures continue.