Minerva notes quiet period for City office space market

Real estate firm announces Interim Management Statement

Article posted: 10 May 2011

Real estate company Minerva last week announced its Interim Management Statement for the period to 4 May 2011.

It noted that the market for prime office space in the City of London was relatively quiet with respect to leasing activity during the first quarter of 2011, reflecting an absence of large deals over 100,000 sq ft and an uncertain global economic backdrop. The vacancy rate, which is declining, remains lower than the long-term average with prime rents steady at £55.00 per sq ft and expected to grow with the continued decline in available prime office space in the Square Mile.

At The St Botolph Building (pictured), Minerva has leased or agreed to lease 23,000 sq ft of retail accommodation representing most of the available retail space, with enquiries under consideration for the remaining office space. Whilst there have been no lettings achieved at The Walbrook Building in the period, the Group continues to receive interest from prospective tenants and discussions continue.

On 14 January 2011, the Company announced that it was in preliminary talks regarding a potential offer for all or part of the Company. Discussions with a number of potential bidders have since progressed and the company is currently in discussion with its lending banks regarding any potential offer. Notwithstanding the good progress that has been made, there can be no certainty that any offer for the Company (in whole or in part) will be forthcoming.

Oliver Whitehead, Chairman of Minerva said: "Discussions have continued with prospective tenants at The Walbrook and St Botolph Buildings during the period. Realising the full value of all these developments for our shareholders remains our priority. Once we are in a position to do so, we will update the market on the progress of our discussions with potential bidders for the Company.”

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Posted by Chris