NCB analyst John Sheehan says any sale of DCC's 49% in homebuilder Manor Park would provide it with the scope to 'dramatically step up' acquisition activity or return cash to shareholders.
On Friday, DCC said it had sold a site in Sandyford for €40m as part of its strategy of generating shareholder value from its property assets 'including its 49% stake in Manor Park Homebuilders'. Weekend press reports suggested DCC and 51% owner Joe Moran had reached agreement on how to proceed on the company's future.
In a note this morning, Mr Sheehan described Manor Park as 'an extremely valuable asset', which accounts for the bulk of the €350m in property assets held by DCC. 'Manor Park has a large land bank and significant commercial and residential development potential over the medium term,' the analyst added.
DCC shares jumped 50 cent to close at €26.70 in Dublin.
