The Unibail (ASX:URW) share price is climbing today. Here’s why.

The Unibail share price is charging higher today as the company announced the sale of an office block in Paris. We take a closer look.

| More on:
A happy businessman pointing up, inidicating a rise in share price

Image source: Getty Images

The Unibail-Rodamco-Westfield CDI (ASX: URW) share price is climbing today after the company announced the sale of a major office building in France. The Unibail share price is currently trading 6.76% higher at $3.00.

What does Unibail do?

Unibail is the largest listed real estate company in Europe. The company is classified as a retail real estate investment trust (REIT) on the S&P/ASX 200 Index (ASX: XJO).

Unibail focuses its operations on big shopping centres in major European cities, including the large office buildings in the heart and west of Paris, France, and major convention and exhibition venues in and around Paris.

Why happened today?

Unibail announced a deal this morning to sell the SHiFT office building in Paris for 620 million euros. The sale price represents a premium on the 30 June book value. However, shareholders should note that the transaction is subject to standard conditions and is expected to be completed by January 2021.

The SHiFT office building is located in the business district of Issy-les-Moulineaux (Paris) with a total area of 47,200 sqm. The property is currently leased to Nestlé for its French headquarters on a 12-year agreement.

What now for the Unibail share price

The transaction is part of the REIT’s 9 billion euro reset plan to strengthen the group’s balance sheet in response to COVID-19. On completion of the sale, the group will have generated 5.3 billion euros of net disposal proceeds since June 2018.

The Unibail share price has been on a downward spiral since the start of the pandemic. Despite this rare uptick in share price, shareholders are likely to be wary of the damage rising numbers of COVID-19 cases in Europe may have on the company’s shares.

The Unibail share price has fallen a huge 73% since the start of 2020.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Top 10 - asx shares today
Share Market News

Here are the top 10 ASX shares today

Today, the S&P/ASX 200 Index (ASX: XJO) fought back against the selling pressure throughout the day to finish in the green. …

Read more »

The word inflation written with a ticking time bomb.
Share Market News

Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?

Key points The ASX 200 took a hit following comments from the United States Federal Reserve chair Jerome Powell Expectations …

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

These 3 ASX 200 shares are topping the volume charts this Friday

Finally, a day of green for ASX shares! The S&P/ASX 200 Index (ASX: XJO) is bouncing back strongly today, after a …

Read more »

Young boy wearing suit and glasses adds up on calculator with coins on table
Share Market News

This world-famous fund manager is ‘buying the dip’. Here’s why

Key points Bill Ackman is one of the most famous fund managers in the world He runs Pershing Square Capital …

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Share Market News

ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a much-needed positive …

Read more »

A man activates an arrow shooting up into a cloud sign on his phone, indicating share price movement in ASX tech shares
Share Market News

Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction?

Could the Betashares Nasdaq 100 ETF (ASX: NDQ) be a good opportunity during this correction for both the global share …

Read more »

A woman shouts through a megaphone.
Share Market News

2 ASX growth shares to buy in February with 40% upside

If you’re looking to make some additions to your portfolio in February, then the two ASX shares listed below could …

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Friday

On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard and was able to record a small gain. The benchmark index rose …

Read more »