St. Modwen Properties PLC, the UK's leading regeneration specialist, announces that its joint venture with VINCI, VSM Estates, has completed a number of transactions and financing agreements in relation to the project MoDEL contract to redevelop RAF Uxbridge, which VSM Estates was awarded in August 2006.
The transactions completed are:
VSM Estates has accelerated the outright acquisition of RAF Uxbridge from the Ministry of Defence under Project MoDEL, significantly improving the timing and certainty of receipts to the public sector. The site covers a total of 110 acres, of which 45 acres are developable, and has planning consent for 1,340 residential units and circa 200,000 square feet of commercial office and retail development, as well as a new primary school, a 1,500 seat theatre and a 40 acre public park. The acquisition has been financed principally through a £60 million, five-year debt facility provided by HSBC, with additional equity provided equally by St.Modwen and VINCI.
23 acres of the developable Uxbridge land acquired have been committed to Persimmon for the development of circa 500 homes under St.Modwen and Persimmon's existing joint venture arrangements, with construction due to commence by the end of this year.
VSM Estates has also agreed with Barclays that the pre-existing VSM debt facilities of £36 million can be wholly focused on RAF Mill Hill and that these facilities can be extended until 2017.
The first two parcels of land at the Mill Hill site, comprising a total of approximately seven acres, are currently being marketed.
Bill Oliver, Chief Executive of St. Modwen, commented: "These transactions demonstrate St. Modwen's ability to create value from its landbank and the capacity of the business, in joint venture with VINCI, to successfully manage complex long term partnerships with the public sector.
"Furthermore, they will provide accelerated cash receipts and certainty to our public sector partners, demonstrate the inherent value in our residential land bank and show the strength of relationship with our commercial and banking partners. These transactions further underline our ability to perform, despite the difficult wider market conditions and we continue to look to the future with confidence."
Source: FTI Consulting