Final offer from Limitless for Minerva

Permalink: Final offer from Limitless for Minerva
by Lin Freestone

Minerva, the developer of office projects mainly in London, has received a further takeover proposal from Limitless, the Dubai-based property investment group, valuing the company at around £258m.

Limitless has said the offer is final. It is more than double the value of Minerva’s shares at the start of trading on Monday, but less than half their value a year ago.

Earlier in July Minerva turned down an offer from Limitless that valued Minerva’s equity at between £226m and £242m.

There is speculation that the deal will not be accepted. Minerva said the proposal was subject to conditions, including due diligence, and that although discussions are continuing there could be no certainty an offer would be forthcoming, even if pre-conditions were met.

Minerva has been badly affected by the turbulence in the property sector, particularly as it is exposed in the City of London with two major office developments. The Walbrook is a 445,000 sq ft office block in the City designed by Foster and Partners. The company is also building a 560,000 sq ft City office complex called St Botolphs behind Aldgate station.

Although Minerva has found tenants to take some space in its City developments, the majority of the space remains unlet. The latest survey from the Royal Institute of Chartered Surveyors reveals that demand for commercial property has fallen to its lowest level in a decade.