Updates from Hammerson and Rentokil

The FTSE 100 lifted 1.43% yesterday to 6,584.7, despite more indication of Fed tapering on Wednesday. Carnival was the biggest climber, up 5.4% to 2,312p while Petrofac also lifted strongly, up +4.6% at 1140p. Fresnillo was the biggest loser, down -3.99% at 698p.

The Dow Jones ended the day 11 points higher at 16,179.
Another subdued day on the news front. Hammerson and Aviva Investors, who own Queensgate Shopping Centre in Peterborough in a 50:50 joint venture, have exchanged contracts to sell the freehold of the centre to Invesco Real Estate for £202 million.

Net passing rent for Queensgate is currently £13 million and the disposal is expected to complete in early 2014, Hammerson said in a statement. The transaction is marginally below Hammerson's book value at June 2013.

"2014 will see major progress," says Hammerson chief exec David Atkins, "on our development projects and these additional funds will help us grow the business through our substantial development and refurbishment programme and selected acquisitions."

Next, RentokilInitial says it has agreed to acquire the pest control division of Green Compliance Plc for £4.0m in cash: £3.25m in initial consideration, with a further £0.75m payable over 12 months in line with normal contractual protections and the achievement of certain operational targets.

Green Compliance had audited revenues of £5.0m for the year ended 31 March 2013. The transaction is anticipated to complete on 31 December 2013.

Rentokil saw its Neutral stock rating reaffirmed by Credit Suisse recently. Earlier in the month Barclays re-stated is Overweight rating on the stock.

Finally, LondonMetric Property has exchanged on the acquisition of Royal Mail's main distribution centre at Daventry International Rail Freight Terminal (DIRFT) from Meghraj Properties Limited for £36.0 million, reflecting a net initial yield of 6.7%.

The unit is let at a rental of £2.5 million per annum with annual RPI-linked uplifts, capped at 3%, and an unexpired lease term of 9.7 years. The purchase will be funded from existing resources.

"The Royal Mail distribution centre," says chief exec Andrew Jones, "represents an attractive off-market acquisition that is in line with our strategy of increasing our ownership of key distribution assets that will continue to benefit from the growth in online retail spending."