Heal With Vitamins

A number of private equity groups involving real investments groups like Blackstone, Fortress, Europa Capital, Area etc. have shown their interest in purchase of a city property company, Minerva.

Though this is not the first time that Minerva has been at the verge of sale, as in 2008, it seemed quite certain that Limitless would buy out the company but no consensus could be reached between Dubai and Minerva banks with regard to terms of lending and therefore, the deal could not be concluded. However, analysts suggest that Limitless might try striking the deal again.

The deal with Minerva is that it has investments in Wallbrook as well as St. Botolphs and it has also been given extra time till June 2011 for making repayments of its debts of about £1bn. Further, at the time of restructuring, banks deferred some covenants and removed certain others.

The discounting of the shares to their net asset value for trading has attracted the attention of a lot of buyers, who are willing to invest in the company. In addition to all this, Minerva itself is quite sure that with the increase in desk space rents of new city offices, including one in the Square Mile, they will be able to repay all debts soon.

Though the company may be required to cut down on office space rents in order to remain competitive, according to the chief executive of Minerva, Salmaan Hasan, the company has received lots of attention from different players and that the lack of competitors can actually help the company to attract more tenants and hence more revenues.

This entry was posted on Saturday, October 24th, 2009 at 5:49 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.