Minerva confident as it continues to seek Walbrook tenants
Minerva, which specialises in office and residential developments in the City and West End of London, today announced a 2.8% increase in the valuation of its investment properties, and a 3.7% rise in the value of its trading portfolio, during the first half of its financial year (the six months to end-2010). The overall portfolio value rose 3.2% to £1,207.4m, adjusted for expenditure and disposals. Chairman Oliver Whitehead said the group was encouraged by the prospect of rental growth in the City of London and the shortage of supply in the Square Mile, and added that Minerva ought to benefit from this forecast growth.
The company did not achieve any lettings for its Walbrook Building during the first half, but said it had received renewed interest from prospective tenants since the start of 2011. It pointed out that the Walbrook Building is 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.
Minerva is confident that the unlet office space in the St Botolph Building, on which practical completion was achieved during the period, can be let on attractive terms, given the limited supply of office space in the City and the interest shown by prospective tenants. It says about 55% of the office space remains unlet and is being actively marketed.
The group’s Lancaster Gate residential development remains on target for completion in the late summer and pre-sales so far represent 59% of the available space on this project.
Diluted EPRA net asset value was up 6.2% for the half-year to 140.0p per share as of 31 December 2010. Talks continue with unnamed parties regarding a possible takeover of the group.
Another listed property company, Hammerson, which specialises in retail and office property in the UK and France, yesterday reported a 12.5% increase in the value of its UK portfolio and 17.6% growth in adjusted EPRA net asset value to 495p per share over the full year to 31 December 2010. The group’s net rental income was up 3.5% year-on-year on a like-for-like basis at £284.7m. The group said retailers’ preference for prime sites and strong trading locations was clear during 2010 and added that its regionally dominant shopping centres and accessible retail parks had performed well.
Hammerson made disposals totalling £555m during the year, recycling 15% of its portfolio in the process. The group invested £219m during the period, saying it had reinvested in properties with better growth prospects through active management. Purchases during the year included Leadenhall Court in the City and a stake in 10 Gresham Street; buying up full control of Battery Retail Park in Birmingham; and the acquisition of Wrekin Retail Park in Telford. Earlier this month it also bought French shopping centre SQY Ouest, which is next to its existing Espace St Quentin store in Paris.
