St. Modwen has sold half of its remaining non-core retail assets for £34m (€40m) as part of its plan to refocus its portfolio on fewer, larger assets.

In three separate transactions, the FTSE 250 company has sold three retail assets in Doncaster, Crosby and Kirkby for a combined consideration of £34m, representing a 9% discount of compared to the May 2019 book value of the three assets.

The latest disposals, which represents just over half of the company’s remaining non-core retail portfolio as at May this year, follow the sale of £177m of non-core retail assets during 2018.

As a result, St. Modwen’s residual non-core retail assets now account for only 2% of its portfolio, down from 16% at the start of 2018, the company said.

Mark Allan, CEO of St. Modwen, said: “Continuing our targeted approach to capital recycling, proceeds from these latest non-core disposals will be reinvested into our substantial industrial and logistics pipeline, which could deliver over 15m sq ft of new space over time.”

Allan said with a yield on cost of 8% and a yield on incremental capex of 9%, delivery of this pipeline is expected to drive meaningful development upside and significant growth in income.