Minerva
counts cost of world liquidity crisis
25/02/08
The way in which last autumn's world liquidity crisis is working
its way through industry and to the property sector in particular
is illustrated in the interim results of quoted real estate
group Minerva.
Chairman Oliver Whitehead says that although the group has
£300 million of funding is in place for its projects,
notably at Walbrook and St Botolphs in the City of London, uncertainties
in the financial markets have adversely affected the funding
of real estate transactions.
'Furthermore, the difficulties facing developers in the financial
markets have also reduced the potential supply of speculative
developments, particularly in The City of London,' he said.
'As a result, our major projects in the City are expected to
be delivered into a more supply-constrained environment from
2010 onwards.'
Revaluation of the investment properties of Wigmore Street-based
Minerva (MNR) give it a deficit of 14.4%.
Net asset value of the group per share comes down from 327.9p
at the end of June to 266p at the end of December.
The interim figures for the period to 31 December show a loss
before tax and investment property revaluation movements of
£6.4 million against £2.3 million last time.
After tax the loss rises to £90.7 million against a profit
of £14.1 million for the first six months of the previous
year. There is no dividend.
In addition to its two City of London developments, the group
is involved with a retail development at Park Place in Croydon,
residential developments at Kensington and Lancaster Gate, and
has just submitted a planning application for a mixed-use residential-led
scheme at the old Young's Brewery in Wandsworth.
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