In its latest annual results St Modwen has reported that it is on track to deliver 1.5 million sq ft of new space in 2021.
It also reported that it had completed 1.2m sq ft of new warehouse development during 2020, with 81% let or under offer.
Of the new space to be deliver nearly a third is pre-let or under offer already.
Sarwjit Sambhi Chief Executive Officer of St Modwen said: “We plan to develop 1.5m sq ft of urban and big box warehouses in 2021 and, subject to continued customer demand, up to c. 2m sq ft p.a. thereafter. Leasing momentum is strong, with 81% of the 1.2m sq ft we completed in 2020 either let or under offer, compared to 58% of the 0.9m sq ft 2019 completions this time last year, and 27% of our committed pipeline is pre-let or under offer. We aim to grow our £666m logistics portfolio to over £1bn in the next three years, further improving the resilience of our returns, and with a total pipeline of 19m sq ft and an estimated ERV of £130m we have significant further growth potential beyond that. With a yield on cost of c. 7–8%, this presents a valuable long-term opportunity, while the short-cycle nature of these development schemes means we can respond quickly to any changes in demand.
The developer started work on its 11.3 acre St Modwen Park Basingstoke scheme only last month where it is speculatively developing unit of 36,987 sq ft, 51,752 sq ft and 97,781 sq ft.