This week: Summit ready to reach the top, Beacon beginning to shine and Diamond finding a better cut
Abraxus Investments (OFEX:AXU 2p/£688.9k)
PLUS-listed Abraxus Investments is engaged in identifying renewable energy opportunities in Central and Eastern Europe. The company has recently announced a proposed reverse takeover of S. C. Bridgeconstruct S.R.L., a Romania-based renewable energy provider which has recently secured rights to develop a windfarm. To acquire Bridgeconstruct, Abraxus will be issuing shares in the amount of £0.61m, the rationale for which is in accordance with the company’s strategy of investing in high-growth opportunities with above average returns. Romania has significant wind power potential with projected technical capacity set to increase by as much as 150 per cent in fifteen years time. Abraxus has yet to record any income from operations but this trend might be reversed soon with renewable energy sources recording double-digit growth rates throughout Europe.
AH Medical Properties (OFEX:AHMP 35.5p/£23.31m)
It isn’t surprising that the PLUS listed Medical Properties has attracted an approach. It has come from almost nowhere in only five years to challenge the granddaddy of investment in the medical property sector, but its shares until very recently were hiding their light under the PLUS bushel.
Medical premises until a few years ago were a tiny part of the property world. But government has been encouraging medical care closer to the community (so cheaper) and away from hospitals, with a major programme encouraging the private sector to provide up-to-date surgeries and medical centres, for which the NHS guarantees the rents that GP’s pay. So investors have come to see the attractions of a property sector not exposed to the vagaries of the commercial economy but still offering an inflation hedge.
AHMP is an offshoot of AIM listed Ashley House which has carved a large niche in design and build for the sector, and gives AHMP first refusal on its developments. As a result (with acquisitions) AHMP has come from only five properties in 2005 to some 65 now – over half the 115 that sector leader Primary Care Properties has taken some 15 years to get together. Importantly, unlike PHP who mostly buys second hand, AHMP’s are all practically new and its link with Ashley House gives it both a share of profit on their development and an assured pipeline that we estimate will take it close to…
