MINERVA, the property developer behind plans to build the City of London’s tallest skyscraper, is expected to start considering up to 12 bids for the company, after setting a self-imposed deadline of the close of business last night for first round offers for the company.
Blackstone, the US buyout company; Hines and Tishman Speyer, the US property developers; Multiplex, the Australian construction company, and Westfield, the Australian shopping centre developer, are among the parties understood to have expressed interest. British Land, the FTSE 100 property firm, Canary Wharf, the Docklands developer and Morgan Stanley’s Real Estate Investment Fund have also expressed interest.
Analysts expect bidders for the firm to form consortiums because of its diverse collection of assets, which range from the Allders department store chain, to a proposed shopping centre development in Croydon and a site for an office tower in the City. Despite the apparent interest, market observers are sceptical that Minerva will achieve a high bid price because, in reality, only a limited number of firms are large enough to complete the deal.
Analysts estimate that any serious bidder would need at least £500 million of equity to complete a takeover, because a large percentage of the value in Minerva is tied up in three large development sites that are non-income producing, against which it would be hard to secure debt financing.
Later this month Minerva is expected to report that its revised net asset value per share will be between 350p and 370p, valuing the firm at more than £560 million.