PARIS (Reuters) - Nexity rallied on the Paris Bourse on Wednesday morning after finalizing the sale of its property management activities to investment firm Bridgepoint for an enterprise value of 440 million euros.

At 08:32 GMT, Nexity was up 3.28%, among the best performers on the SBF 120, which was up 0.08% at the same time.

The property developer, which is feeling the full force of the sector's crisis, announced that it would use the proceeds from the sale of 400 million euros "to significantly accelerate the debt reduction trajectory".

"The rebound in the share price may seem surprising, given that the news (of the sale) was announced in December", notes Florian Cariou, analyst at Midcap Partners.

Since then, the publication of poor results for 2023 and the announcement that the dividend would be cut have caused Nexity shares to plummet, and they are currently trading at their lowest level since 2008.

"The proceeds of the sale are now on the Group's balance sheet, which, in relation to current capitalization, may have made investors realize that the valuation was very low", says the analyst.

(Written by Dimitri Rhodes, Corentin Chappron, edited by Blandine Hénault)