Real Savings Travel

Minerva, the UK based property investment and development group, is all set to finalise a sale which will bolster its finances to battle the takeover bid by a South African investor. A building situated in the West End at Wigmore Street, which was earlier valued at £39m, will now be sold for £40m.

The growing interest in prime desk space has helped Minerva gain the edge in this deal. However, the property investment company is being very cautious and is refusing to comment on who the buyer is. This will be revealed only after the sale is officially completed. This deal will be critical for Minerva in its battle against the hostile takeover bid from Nathan Kirsch.

With finances bolstered by the deal, Minerva stands a good chance of warding off the bid. The £85m takeover bid from the South African investor had raised serious concerns for Minerva.

As part of its counter arguments, Minerva has established that its property values have risen by 10pc beyond the half way mark in this year. In addition, the pro forma NAV for the shares of the property company has gone up to double the figure offered by Kirsch. These facts have all been presented in strong defence statement from Minerva.

This is indeed a sign of improving fortunes for the company as compared with its lowest ever figures of 5.47pc share value, which came by as a result of low tenancy rates in two major projects and the poor financial conditions brought about by recession. The company soon hopes to let out a significant chunk of its property at The Walbrok and St. Botolphs.