St. Modwen in Talks to Sell $746 Million Land Plot in London

St. Modwen Properties Plc. and France’s Vinci SA are in exclusive negotiations to sell a site near Battersea Power Station in London that has approval to build more than 1,800 homes.

“While there can be no guarantee of any transaction completing, we are now in exclusive negotiations with a prospective purchaser at a level which is firmly supportive of book value,” Birmingham, England-based St. Modwen said in a statement on Tuesday.

Sales of London luxury homes under construction last year dropped to the lowest level since 2012, leaving developers with a record number of unsold properties, as the market was buffeted by successive tax increases and uncertainty caused by the Brexit vote.

The 10-acre (4-hectare) New Covent Garden Market site was valued at 621 million pounds ($723 million) about a year ago, when the owners said they planned to sell the asset. The companies subsequently wrote down the value of the plot by 21 million pounds in July after residential prices fell.

St. Modwen rose as much as 3.7 percent in London trading, the biggest gain in three months. The shares were up 3 percent at 333 pence as of 8:12 a.m.

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