Equities are beginning to get in the Christmas spirit with the ‘Santa rally’ giving shares in London a lift again this morning.
IC TIP UPDATES:
Construction specialist Kier Group (KIE) says that its joint venture with Clancy Docwra has won a 15 year utilities management and maintenance contract with Thames Water which should see the joint venture earn £500m over the next five years. We maintain our buy rating.
Sky (SKY) is making a $4m equity investment in multiscreen video delivery technology company Elemental. We keep our buy on Sky.
Development Securities (DSC) has signed a deal to push ahead with the development of land at 399 Edgeware Road in London. Partner L&Q will fund the development of 183 apartments and town houses, with Development Securities as managing the project. This releases £16m of equity to Development Securities and £4m profit above book value. The company is already developing a Morrisons food store on the site. Buy.
Sirius Real Estate (SRE) is to acquire two business parks in Germany, at Mahlsdorf and Potsdam, for a combined €48.9m. We keep our buy rating.
KEY STORIES:
Oil explorer Afren (AFR) says it has received a ‘highly preliminary’ approach from SEPLAT Petroleum Development Company which may or may not lead to an offer for the company.
Kingfisher (KGF) is to sell off its 70 per cent interest in its B&Q China business to Wumei Holdings for £140m.
Property company Kennedy Wilson Europe Real Estate (KWE) is acquiring a 3.5m square foot portfolio of 180 mixed use properties across the UK from receivers on behalf of Aviva for £503m.
Market Tech (MKT), the property company which owns Camden Market in London, has been admitted to the Aim market this morning after raising £100m in a placing.
OTHER COMPANY NEWS:
Semiconductor wafer reclaim specialist Pure Wafer (PUR) has suffered a fire at its facility in Swansea which is likely to affect output, although the impact has not yet been quantified.
Empiric Student Property (ESP) has acquired the Algernon Firth student accommodation building in Leeds for £7.2m.
