St Modwen and Vinci complete Nine Elms sale

Oliver Haill Sharecast | 21 Aug, 2017 08:07 - Updated: 14:48 | | |

nine elms st modwen
  • 370.30
  • -0.67%-2.50
  • Max: 373.30
  • Min: 369.40
  • Volume: 249,286
  • MM 200 : n/a
17:17 20/09/17
  • 19,540.77
  • 0.03%5.29
  • Max: 19,567.31
  • Min: 19,523.15
  • Volume: 0
  • MM 200 : n/a
17:19 20/09/17
  • 4,043.45
  • -0.03%-1.33
  • Max: 4,052.07
  • Min: 4,032.65
  • Volume: 0
  • MM 200 : n/a
17:19 20/09/17
  • 3,992.93
  • -0.04%-1.43
  • Max: 4,001.45
  • Min: 3,982.92
  • Volume: 0
  • MM 200 : n/a
17:19 20/09/17
  • 2,657.16
  • -0.10%-2.66
  • Max: 2,667.30
  • Min: 2,651.61
  • Volume: 0
  • MM 200 : n/a
17:19 20/09/17

St Modwen Properties has completed the £470m sale of its interest in the 10-acre Nine Elms Square site in London to a subsidiary of Chinese giant Dalian Wanda, which has transferred ownership to an unnamed third party.

Vinci St Modwen, the 50/50 joint venture between the FTSE 250 property developer and the UK arm of French construction giant Vinci, confirmed the completion of the deal, having announced the exchange of contracts in June.

Completion followed demolition of the former New Covent Garden flower market on one part of the Battersea site ahead of the construction of a 500,000sq ft new purpose-built market, to be funded by the two companies.

St Modwen will use £70m of its share of the proceeds to fund its share of this construction and use the remainder to reduce debt and fund ongoing development activity.

A spokesperson for Dalian confirmed that the Hong Kong-based subsidiary of Dalian which acquired the property has since transferred its 100% ownership to a third party but "do not have further information on the third party at this point".

Although Chinese investors spent £3.96bn on London commercial property in the first six months of 2017, mostly from Hong Kong, companies in the People's Republic are facing tighter capital controls from Beijing that has seen outbound property investment by mainland Chinese firms shrink 82% from a year ago and fall another 15%, weighing on prices in the UK, US and Australia over the medium term.

Still, Hong Kong conglomerate Lee Kum Kee bought the 34-storey Walkie Talkie skyscraper for £1.28bn last month, so it seems the province remains outwardly focused.

More news

20 Sep US close: Dow, S & P 500 close at session highs as Fed starts QE taper

The Dow Industrials and S & P 500 ended slightly higher even as the US Federal Reserve announced the historic end to its balance sheet expansion, although the Nasdaq was held back by losses in shares of Apple.

20 Sep Results round-up

Kingfisher posted better profits than were expected for the first half of the year but the do-it-yourself retailer remained cautious on the second half backdrop in the UK and France.

20 Sep Broker tips: Nostrum Oil & Gas, Stagecoach, BAE Systems

RBC Capital Markets upgraded Nostrum Oil & Gas to 'outperform' from 'sector perform' saying recent weakness is an opportunity and its discount to peers it set to unwind as it delivers operational milestones.

20 Sep Fortum and E.ON in 'advanced talks' for sale of Uniper stake

Finnish firm Fortum announced on Wednesday that it was in advanced talks with E.ON over the potential €3.76bn purchase of German energy company Uniper.

20 Sep Federal Reserve to start taper in October, nudges rate forecast lower

America's central bank has stuck to script - or almost - announcing it will begin to taper the size of its balance sheet next month while keeping the target for its main policy interest rate unchanged at between 1.0% and 1.25%.

20 Sep Europe close: Spanish stocks underperform

European stocks ended the session little changed amid moderate selling pressure on Spanish stocks on the back of the latest news around the attempted independence referendum in Catalonia and ahead of the US Federal Reserve's policy decision later in the session.

20 Sep Apple discovers issues in new smartwatch 48 hours before shipping

Tech juggernaut Apple announced on Wednesday that its new Series 3 smartwatches had been experiencing significant connectivity issues just days before they were due to be shipped.

20 Sep London close: Strength in Sterling puts a lid on stocks

London stocks traded fairly flat on Wednesday as the pound popped higher on the back of stronger than expected retail sales data, even as traders waited on the US Federal Reserve's policy announcement later in the day.

20 Sep Thursday preview: Capita guidance and UK public sector debt under spotlight

Thursday in Europe will initially see any fallout from the US policy adjustments overnight, while in the UK Capita and Mitchells & Butlers investors have results to pore over, with an update on the public deficit later in the morning.

20 Sep Bed Bath and Beyond fails to meet expectations again

Bed Bath and Beyond (BBBY) shares suffered after the New Jersey-based home goods retailer fell short of market expectations yet again.