Mayer Brown advises St. Modwen on £49m share placing to fund New Covent Garden Market development
4 March 2013
London - Leading global law firm Mayer Brown has advised the UK's leading regeneration specialist, St. Modwen Properties PLC, on its placing of approximately 20 million new shares, raising approximately £49 million. The placing will help fund St. Modwen's share of the development of New Covent Garden Market, the UK’s biggest fruit, vegetable and flower market.
Proposals for the market project, a joint venture with VINCI Investments Limited, include a 550,000 sq ft new wholesale as well as 2,800 new houses. The site forms a major part of the wider regeneration of Nine Elms area.
The placing proceeds will enable St. Modwen to exploit the potential of New Covent Garden Market site without the need to increase debt leverage on the St. Modwen group’s balance sheet, and allowing it to use existing resources to fund other developments and major projects.
The shares were priced at 245 pence per share with J.P. Morgan Securities plc and Numis Securities Limited acting as joint bookrunners. The issue of the shares was effected by way of a cashbox placing.
Kate Ball-Dodd, Corporate partner, said: “The redevelopment of New Covent Garden Market is a landmark project in Central London so we’re delighted investors have backed St. Modwen to enable it to participate in a very exciting regeneration scheme.”
The Mayer Brown Corporate team was led by partner Kate Ball-Dodd and included partner Robert Flanigan, senior associate Connor Cahalane and associate Simon Allison.
The placing follows Mayer Brown advising St. Modwen on the launch of its first retail bonds to be listed on the London Stock Exchange which raised £80 million in October 2012.