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Commercial Property News
Minerva post H1 2009 pre-tax profit of £45.6 million as valuations improve
In it's H1 2009 results reported today, Minerva Plc said that it's pre-tax profits were £45.6 million compared to a loss of £188.9 million for the same period in 2008. This included a vauation adjustment of £55.5 million, while the net property income fell to £3.8 million from £5 million previously.
CBRE have said that the investment property portfolio has been valued at £628.8 million (30 June 2009: £514.8 million) and the trading property portfolio at £351.1 million (30 June 2009: £292.2 million). In aggregate, after adjusting for acquisitions, disposals and expenditure in the period, the portfolio has increased by 10.6% overall.
Diluted EPRA ('EPRA') net asset value per share, which incorporates the valuation of the Group's total property, including trading properties before taxation, and adds back the post-tax fair value on financial instruments at 31 December 2009. The EPRA net asset value per share increased by 116% to 101.9 pence at 31 December 2009 (30 June 2009: 47.1 pence).
Administrative expenses for the period increased by £1.7 million to £5.3 million. The increase is a result of the costs incurred in connection with the unsolicited approach and now lapsed offer from KiFin for the shares not already owned in the Company.
Oliver Whitehead, Chairman of Minerva plc, said:
"There is real and growing evidence to show that we have now passed the cyclical low in the commercial property market. Minerva, with its well-located, high-quality portfolio of current and future developments, its strong funding platform and its experienced team, is well placed to outperform in an improving market environment."
The majority of the increase in the Minerva valuation relates to their investments in the City of London development projects at The Walbrook Building and The St Botolph Building, and their scheme at the Ram Brewery, although some of the rest of their portfolio has also seen an improvement, including their high-end residential projects at Lancaster Gate and Odeon Kensington.
Minerva has pre-leased 145,000 sq.ft. of The St Botolph Building to international law firm, Clyde & Co at £48 per sq.ft. The lease, which is for a term of 20 years, contains upward only rent reviews and no break clause. Approximately 45% of the office space in this building is now pre-let, with practical completion on schedule for the summer of this year.
Minerva achieved practical completion on The Walbrook Building earlier this month. They are confident that, with the extremely limited supply of new offices in the City of London, the buildng will be successfully let on attractive terms.
CBRE have said that the investment property portfolio has been valued at £628.8 million (30 June 2009: £514.8 million) and the trading property portfolio at £351.1 million (30 June 2009: £292.2 million). In aggregate, after adjusting for acquisitions, disposals and expenditure in the period, the portfolio has increased by 10.6% overall.
Diluted EPRA ('EPRA') net asset value per share, which incorporates the valuation of the Group's total property, including trading properties before taxation, and adds back the post-tax fair value on financial instruments at 31 December 2009. The EPRA net asset value per share increased by 116% to 101.9 pence at 31 December 2009 (30 June 2009: 47.1 pence).
Administrative expenses for the period increased by £1.7 million to £5.3 million. The increase is a result of the costs incurred in connection with the unsolicited approach and now lapsed offer from KiFin for the shares not already owned in the Company.
Oliver Whitehead, Chairman of Minerva plc, said:
"There is real and growing evidence to show that we have now passed the cyclical low in the commercial property market. Minerva, with its well-located, high-quality portfolio of current and future developments, its strong funding platform and its experienced team, is well placed to outperform in an improving market environment."
The majority of the increase in the Minerva valuation relates to their investments in the City of London development projects at The Walbrook Building and The St Botolph Building, and their scheme at the Ram Brewery, although some of the rest of their portfolio has also seen an improvement, including their high-end residential projects at Lancaster Gate and Odeon Kensington.
Minerva has pre-leased 145,000 sq.ft. of The St Botolph Building to international law firm, Clyde & Co at £48 per sq.ft. The lease, which is for a term of 20 years, contains upward only rent reviews and no break clause. Approximately 45% of the office space in this building is now pre-let, with practical completion on schedule for the summer of this year.
Minerva achieved practical completion on The Walbrook Building earlier this month. They are confident that, with the extremely limited supply of new offices in the City of London, the buildng will be successfully let on attractive terms.
Tue, 23rd Feb 2010