Solihull developer St. Modwen to sell to Blackstone for $1.7 (£1.2) billion
In February the company said it intended to focus on housebuilding and logistics after reporting a loss for 2020 of £120.8 million, following its profit of £49.5 million in 2019,
Danuta Gray, chair of St Modwen, said: “Over the last four years, St. Modwen has successfully reshaped its business to focus on logistics and housebuilding.
“Whilst both sectors benefit from long term structural growth trends, St. Modwen’s financial position is strong and there is a solid strategy in place, the quantum and timing of generating shareholder value is naturally subject to execution risk.
“Following careful consideration we believe this offer is in the best interests of St. Modwen shareholders and significantly accelerates the value that could be realised by St. Modwen if it were to remain independent. Additionally, the board is reassured by Blackstone’s views and approach to investing in the business and supporting our people.”
Head of Blackstone Real Estate Europe James Seppala added: “Our strong conviction in the UK, together with St. Modwen’s high-quality asset base, its team, and its operational capabilities, give us confidence we can further build on the company’s successes.”
St. Modwen is a highly active developer across this region. Last month it announced it had formed a joint venture to develop 240 acres of land in Worcester to build homes and employment space. That follows the news in March that it had been granted permission to build more than 70,000 sq ft of logistics space at its site in South Worcester. The developer has been selected by Midlands Land Portfolio, the property development arm of Severn Trent, as its development partner for a 154-acre site to the west of Cheltenham as part of a wider mixed-use development known as The Golden Valley Development.