SHARE PUNT OF THE WEEK

WHO IS IT?

U+I Group is a property developer that specialises in regenerating buildings in major cities. It has a £6bn portfolio of so-called mixed-use properties, which combine places to live and work.

It was created through a merger of Development Securities and Cathedral Group in 2014.

WHAT’S THE LATEST?

In November, U+I sold four of its developments for a £6.7m profit. The firm says the demand for mixed-use properties is on the rise which will help keep it on track to make £65m-70m this financial year.

Last year, it secured planning permission for a £130m regeneration project near Blackhorse Road Underground station in north London. It is deciding whether to sell the site or develop it itself.

WHO BACKS IT?

Fidelity Worldwide Investment, J O Hambro Capital Management and Standard Life Aberdeen, which together own more than 30pc of the firm’s shares. Experts say it looks undervalued as investors still avoid small property firms. But its share price has risen by nearly 18pc over the past year and it pays a decent dividend of 2.95pc. It also has a healthy number of projects in the pipeline.

Ben Yearsley, of adviser Shore Financial Planning, says: ‘What you’ve got here is a small British property company, which has been unloved since the Brexit vote. But it’s a well-run business that is doing something a bit different and pays a dividend, which is good for investors seeking income.’

…AND WHY YOU SHOULDN’T

It made a £1.7m loss in the year to February 28, 2017, and its latest results show it made a £3.3m loss in the six months to August 31, 2017. However, it made a £26m profit in 2016.

What concerns experts, though, is the fact it has high levels of debt. At the end of August these had reached nearly £160m, which is nearly half of what the firm is worth.