British Land sells interest in West End portfolio, Sage sells Asia and Australia units

Stocks to watch

British Land said it had sold a 75% interest in a portfolio of three buildings in the West End to Allianz Real Estate for £401m. The transaction represents a blended net initial yield of 4.32%, a premium to September book value and is expected to complete in January. The sale brings total asset disposals to date in full-year 2021 to £1.1bn. British Land will form a new joint venture with Allianz, continue to manage all three buildings and receive an asset management fee.

Business software maker Sage said it had sold its Asia and Australia units to The Access Group for £95m. The businesses made £48m in revenue for the year to September 30 and operating profit of £6m. Sage said it is receiving cash for the deal and retaining global products core to its growth strategy including Sage Intacct, Sage People and Sage X3. It added the transaction, subject to approval by the Australian Foreign Investment Review Board, was expected to complete in the next six months.

International Public Partnerships has made an additional investment of €10m (£9.08m), and a contingent commitment of a further €14m to the 100% indirectly owned special purpose company that owns the Northern Diabolo Rail Link project, it announced on Wednesday. The FTSE 250 company said Diabolo is a rail infrastructure investment that was integrating Brussels Airport with Belgium's national rail network. It said the additional €10m had been invested to support the project's liquidity position, ensure its debt covenants would continue to be met, and protect the value of its investment.

Newspaper round-up

Tesco has introduced buying limits on items including toilet roll, eggs, rice, soap and handwash. Customers at the supermarket are now limited to one item per person of toilet roll, and up to three products of eggs, rice, soap and handwash. It is understood the extra limits are pre-emptive measures to help smooth demand in the coming weeks, rather than a reaction to shortages or a change in buying behaviour. They are on top of a three-item limit on essential items such as flour, dried pasta and anti-bacterial wipes which has been in place for several months. - Guardian

The fast fashion brand Boohoo is selling clothes made by Pakistani factory workers who say they face appalling conditions and earn as little as 29p an hour, an investigation by the Guardian has found. In interviews in the industrial city of Faisalabad, workers at two factories claimed they were paid 10,000PKR (£47) a month, well below the legal monthly minimum wage for unskilled labour of 17,500PKR, while making clothes to be sold by Boohoo. - Guardian

Pub and restaurant sales across Britain plunged by almost two-thirds after new Covid restrictions were imposed in the crucial run-up to Christmas, sparking fears of mass lay-offs and a huge wave of closures in the battered industry. Eight in 10 venues across England have been forced to shut by the tough new rules - with 74,000 businesses now lying dormant according to data experts CGA and trade body UKHospitality. - Telegraph

The film studio behind James Bond is up for sale with a likely asking price of more than $5.5 billion, it was reported yesterday. MGM Holdings has hired investment banks to find a buyer as streaming video services compete fiercely for film and television content, The Wall Street Journal said. - The Times

The largest hospitality group in Britain has asked its landlords for a 50 per cent rent cut for the next three months as hotels and restaurants come under huge strain from the latest pandemic restrictions. Whitbread, which owns the Premier Inn budget hotel chain and restaurant brands including Beefeater and Brewers Fayre, said tat it had suffered a “significant” net cash outflow in the first half of the year and that it expected government restrictions to continue to damage the sector’s performance. - The Times

US close

Major US indices turned in a mixed performance on Tuesday amid ongoing concerns around a "new" strain of Covid-19 spreading across the pond.

At the close, the Dow Jones Industrial Average was down 0.67% at 30,015.51 and the S&P 500 was 0.21% weaker at 3,687.26, while the Nasdaq Composite was 0.51% firmer at 12,807.92.

The Dow closed 200.94 points lower on Tuesday reversing gains recorded after yesterday's bank stock-fuelled mid-session turnaround.

Congress passed a new Covid-19 relief and government spending package overnight, with the bill now on its way to Donald Trump's desk for final sign-off by the president before he leaves office.

The stimulus deal includes $300 in extra weekly unemployment benefits, $600 direct checks to all adult US citizens, small business loan funding, aid to airlines, an extension of green energy credits and more.