Developer St Modwen has struck a deal with Marks & Spencer to open one of its biggest stores in the UK.
Pre-tax profits for the year to November 30 will be “substantially ahead of previous management expectations” following the £80 million proceeds from the Elephant & Castle sale and the deal with M&S.
This will see the retailer anchor the second phase of the developer’s £1 billion revamp of the former Longbridge Rover plant in Birmingham with a 150,000 sq ft store.
M&S switched to Longbridge from Land Securities’ nearby Selly Oak development earlier this year.
The shares rose 7.8p to 359.9p as chief executive Bill Oliver reported “a growing sense of optimism in the commercial and, in particular, the residential market place”.
JPMorgan Cazenove analyst Neil Green said: “St Modwen continues to deliver and this trading update encourages us further.”