Developer’s profit bonanza created by its regional teams

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CRANFIELD University’s technology park developers St Modwen Properties has recorded a 40 per cent increase in profit before tax to £37.4 million compared with the first half of 2010.

The company also says property valuations in the six months to May 31 increased by £25million and that 96 per cent of this increase was due to active management of their portfolio.

St Modwen has an estimated £1.066billion of property in its portfolio and has focused on site preparation, remediation and securing planning permission. This has meant they have been able to sell land that is ‘oven ready’ for developers or investors.

The company is turning its attention to growing its development pipeline by bringing forward new developments from its existing landbank and through acquisition.

Bill Oliver, chief executive of St. Modwen, said: “We have achieved very strong results for the first half of the year in markets that continue to present challenges.

“Even in this market, our skilled regional teams have been able to drive income and valuation gains through active management and progressing sites through the planning process in London and across the UK.

“We are also seeing an increase in demand for developable residential land and we continue to progress our residential development programme both in-house and through joint ventures.”