St Modwen raises £49m to bankroll plans for market facelift

St Modwen has tapped shareholders for £49m to help fund the £2bn overhaul of the UK's biggest fruit, veg and flower market, in south London.

The builder is part of a joint venture chosen last year to oversee the redevelopment of the New Covent Garden Market, a major plank in the wider regeneration of the Vauxhall, Nine Elms and Battersea districts of London.

St Modwen, which is partnered with French building giant Vinci, must bear 50 per cent of the development cost of the 550,000 sq ft market development, estimated at between £150m and £200m. In return, the joint venture will gain 20 acres of surplus land, paving the way for the construction of 2,800 homes. Its shares fell 11 per cent to 248.6p on the placing.