We’re past the worst, says Minerva
Oliver Whitehead, chairman of property investment and development group Minerva, says that there is “real and growing evidence to show that we have now passed the cyclical low in the commercial property market.”
Whitehead was speaking as Minerva reported half-year results today, showing growth in its investment property valuation of 9.7%, compared with a decline of 26.5% a year earlier. Its trading property valuation jumped 12.2% (2008: down 7.7%).
Property highlights during the six months to December 2009 included activity at two properties in the City of London. Minerva noted it had pre-leased 145,000 sq ft of the St Botolph Building to the law firm Clyde & Co at £48 per sq ft on a 20-year lease with upward-only rent reviews and no break clause. The group added that about 45% of the office space in this building is now pre-let. Minerva also achieved practical completion on its Walbrook Building earlier this month and says it is confident that the building will be let on attractive terms, given the extremely limited supply of new office space in the City.
