St Modwen has rejected “the level of negative sentiment” towards Nine Elms, SW8, as it reported a 7% increase in the net asset value of its portfolio to £939.4m in its latest six-month results.
The regeneration specialist said the results came despite a £21m reduction of the valuation of its share in New Covent Garden Market, which was revalued principally on the basis of a residential sales price reduction of 3.8%.
It said: “The NCGM valuation is consistent with our expectations and demonstrates that market evidence does not support the level of negative sentiment expressed during the first half of the year towards central London Zone 1 residential prices and Nine Elms in particular.”
However, chief executive Bill Oliver said following the Brexit vote St Modwen would be taking a more cautious approach to the delivery of its development strategy.
The results for the six months to 31 May also absorbed a one-off £13m impact from the increase in stamp duty land tax announced in the Budget, St Modwen said.
Revenues were up 17.7% to £159.7m compared with the same period in the previous year.
Pretax profits were down by 85% to £30m from £206m. St Modwen said the equivalent period in the prior year had benefited from a £128m NCGM valuation increase.
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