Bill Shannon is to step down as chairman at Birmingham-based developer St Modwen as it reports trading profit sharply up, debt down and net asset value growing. Shannon will leave in 2019.

Net asset value per share was up 4.6% to 451p. Trading profit rose 15.2% to £62.6M. Debt fell from £470M to £433.8M as the firm refocused after offloading the Nine Elms residential development site in central London, earning a net £190M.

The results come as St Modwen pivots toward industrial development.

During the year St Modwen delivered 1.4M SF new commercial space with a gross development value of £216M including 900K SF of industrial and logistics floorspace. The commercial development pipeline stands at 1.6M SF.

“The Midlands region saw continued growth in 2017, with a marked rise in both rentals achieved and occupier rates," St Modwen Property Director Midlands and North Guy Gusterson said.

"Our commercial portfolio in the region saw more than 500K SF delivered, with more than 1M SF in the pipeline for 2018, much of it speculative build space, including Tamworth Logistics Park and Phase 2 of Burton Gateway.

"Continued progress at our flagship development at Longbridge has seen the completion of the Extra Care retirement village, and staff facility for the nearby Royal Centre for Defence Medicine, with Phase 1 of the 500K SF Longbridge West Business Park commencing in September."