Minerva announces positive half year results amid buyout speculation

Owners of two significant prime offices in the City of London report half yearly profits of £10.4m

Article posted: 28 Feb 2011

Real estate firm Minerva last week released it half year results for the six months ended 31 December 2010, reporting a 2.8% increase in its investment property valuation, a 3.8% increase on its trading property valuation and profit for the period of £10.4m.

Reporting on operational highlights for the period, Minerva stated that it continues to make progress on its landmark properties and developments in London, which includes two significant prime offices in the City.

The Walbrook Building represents the only completed vacant new building in the City capable of meeting the demands of a single occupier requiring more than 150,000 sq ft of office space in the Square Mile. The property is being marketed in an environment of limited supply and improving commercial terms for prime office space in the City of London. Whilst there have been no lettings achieved in the period, the Group has received renewed interest from prospective tenants since the start of 2011.

Practical completion was achieved on The St Botolph Building (pictured) during the period. Again, the limited supply of new office space in the City and the interest from prospective tenants gives the Group confidence that the remaining vacant space in the building can be let on attractive terms.

On 14 January 2011 the Company announced that it was in preliminary discussions which may or may not lead to an offer being made for the Company in whole or in part. Discussions continue to progress but Minerva says that there can be no certainty that an offer will be forthcoming.

Oliver Whitehead, Chairman of Minerva plc, said: “The dynamics in the City and prime residential markets in London continue to give us confidence that Minerva is well placed with its high quality developments and investments. We remain encouraged by the prospect of rental growth in the City of London and shortage of supply in this, and the high-end residential markets and believe that Minerva should be a key beneficiary of that growth.”

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Posted by Jo