F&N: +0.3% at $5.87, in muted volume with a limited reaction to news it has entered a 50/50 JV agreement with Sekisui House, to develop the Central Park project in Sydney. DBSV sees the news as mildly positive, as it helps lock in some gains and accelerate its asset recycling drive. Notes the transaction will net a gain of $52m, which should be booked in the current FY…
Adds, potential future collaboration with Sekisui would add credibility to the quality of assets being developed in Australia. DBSV keeps its Buy call and TP $7.20...
Nomura, which has a Buy call and TP $7.60, says the deal will crystallize the value of the land for F&N and enable it to finance the project jointly with Sekisui. Adds, it will reduce F&N's capex commitment and allow it to redeploy capital more efficiently. Continues to like F&N given its stability in earnings and strong F&B franchises.
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