Minerva boss spots the end of the slump
PROPERTY developer Minerva yesterday gave further signs of economic recovery after reporting that the commercial market decline was bottoming out.
Chief executive Salmaan Hasan told City PM: “For top quality space – the prime end of the sector – we are now past the bottom of the market, and over the worst of it.”
Hasan added he didn’t believe there would be a “double-dip” retreat to a period of steep declines and said that improving conditions would boost rents and reduce the need for developers to offer generous rent-free periods in a bid to lure tenants.
Minerva, which owns the City Walbrook and St Botolph developments, said that it had “quite extensive interest” in the two sites.
During the downturn a number of office construction projects have been halted meaning that a short supply of new space is spurring competition. There are only five possible sites for companies who want new space to move into – and Minerva owns two of these.
Media powerhouse Bloomberg was believed to be eyeing up the Walbrook site earlier this year, but as yet no deal has been signed.
The group yesterday said that it had narrowed its pre-tax losses in the year ended 2008 to £4.6m, compared to a loss of £12.8, the year before.
The losses reflect a £285m write down in the value of its portfolio.
Minerva, unlike its property peers, has not tapped the market for financing, but has secured a £750m refinancing deal with its banks last month. But Hasan said he would “not rule out” tapping the market in the future.