THE property company behind ambitious plans to rejuvenate Eastleigh’s railway works reported losses more than doubling to £101.7m.

However, regional developer St Modwen said it saw “important signs of improvement” in the property market.

The firm, which specialises in town centre regeneration and bringing former industrial sites back into use, such as the former Alstom works in Eastleigh added that prices had stabilised after a 20 per cent decline in the value of assets over the year.

Bosses are predicting a return to profit growth despite uncertain market prospects and “fragile” business confidence.

St Modwen is hoping to see up to 400 jobs created in Eastleigh, complete with a new business park and even a return to building trains on the historic Campbell Road facility, which at one stage employed 6,000 people in that line of work.

Recycling of old trains is also about to start at the site and Knights Rail Services plans to attract train builders and believes new fleets of Thameslink, Cross Rail and London Underground carriages may be assembled in Eastleigh soon.

Currently there are 16 firms and 100 workers operating on the site that handled £5m of business last year. The biggest companies with a base at Eastleigh Works include Network Rail, Siemens and Arlingtons.

Anthony Glossop, St Modwen chairman, commented: “Property market prospects still remain uncertain.

“The economy may be slowly emerging from recession, but business confidence remains fragile, with continued pressure on rents and occupancy levels.

“However, St Modwen is well prepared for such conditions: our financial position is sound; our business model will increasingly create value; and we are in a good position to seize attractive opportunities.

“I am confident that 2010 will see the company returning to growth in profits.”