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Old September 20th, 2005, 02:17 PM   #1
jef
 
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Minerva Building is shelved

Minerva reportedly scrap its plan to develop the City tallest tower.

What tower is the next one? My guess: LBT
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Old September 20th, 2005, 02:34 PM   #2
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Minerva Plc announce today "We are also now focusing closely on what is potentially our most exciting project namely, The Minerva Building. This headquarters office development designed by architects Grimshaw will have a world class status and will offer a form and content hitherto not provided in the City of London. The team at Minerva is in the process of refining its plans for this project and as the occupational market continues to strengthen the prospect of significant asset enhancement through redevelopment moves ever closer. "

They actually did not find any development partner. The Group announce that the plans to proceed with construction are shelved until they find a development partner. Meanwhile, they will:
- work on flexible leasing strategy
- refining floor plate design and lifting strategy
- progress on advancing new Public Square
- try finding a development partner.

Apparently the design of the floor plates was not attractive for the tenants. Gothic mentioned this point (months or years ago).
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Old September 20th, 2005, 02:34 PM   #3
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They have done no such thing- If you read there financial reports they are consolidating to 3 main developments (Wlabrok , Park place & Minerva)& hope to develop them all. IT looks like they are re-configuring Minerva to take multiple tennants.

http://www.minervaplc.co.uk/news/story.jsp?id=698&page=

http://www.minervaplc.co.uk/files/700/presentation.pdf
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Old September 20th, 2005, 02:38 PM   #4
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Minerva have had financial problems, which is why the project has been dogged with problems.

Why you should suggest that Minerva's problems should effect other London Developments is beyond me.

London will continue to build and continue to see more new projects, the fact that not all projects make it, is a fact of life.

However London has seen massive building in recent years, with large parts of the city being redeveloped, and these are exciting times for London.
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Old September 20th, 2005, 02:44 PM   #5
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that is NOT shelving the building. they aer doing exactly what i said theyd do - they realise that the floor plates arent attractive for tenants, well not the sort who hang around in the city, and are obviously redoing it for multi tenancy use.
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Old September 20th, 2005, 03:27 PM   #6
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Maybe something thiner a la Heron will emerge ?!?
50 000 sq m would also be more viable in this area.
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Old September 20th, 2005, 03:29 PM   #7
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I was also referring to the press conference during which they made it clear it was "imprudent to pursue" this development. This is the third skyscraper to be cancelled after Columbus Tower and Heron Tower. Naturally I suppose that Minerva will eventually come up with a revised scheme. But I do not believe we will see anything happening during this decade because they indicated they will first proceed with Walbrook and Park Place. I am looking forward to the annual report of CLS to be released on 23 Sept. We will know if LBT is still on the agenda.
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Old September 20th, 2005, 03:43 PM   #8
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Quote:
Originally Posted by Day Release
Minerva have had financial problems, which is why the project has been dogged with problems.
Sorry to contradict you but Minerva is one of the most profitable real estate and its capital structure is one of the best (low leverage ratio).

Quote:
Originally Posted by Day Release
Why you should suggest that Minerva's problems should effect other London Developments is beyond me.
I never suggested that. What I pointed out is that this is the third proposed skyscraper to be scrapped since the beginning of this year - reflecting below average office demand from large corporates and financials.

Quote:
Originally Posted by Day Release
However London has seen massive building in recent years, with large parts of the city being redeveloped, and these are exciting times for London.
What skyscrapers (150m+) are you talking about? Let me know what i missed.
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Old September 20th, 2005, 04:10 PM   #9
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Quote:
Originally Posted by jef
Sorry to contradict you but Minerva is one of the most profitable real estate and its capital structure is one of the best (low leverage ratio).
Every one on this forum knows the financial problems Minerva have been through, they were even forced to sell Alders and cut the company pension scheme.

A recent press article.

Quote:
ESTATE
Minerva counts cost
Tue 20 Sep 2005

MNR - Minerva

Latest Prices
Name Price %
Minerva 274.25p -0.09%

FTSE 250 7,937 +0.09%
FTSE 350 2,770 -0.10%
FTSE All-Share 2,722 -0.08%
Real Estate 3,494 -0.18%

LONDON (SHARECAST) - City-focused property developer Minerva announced poor results as the group said it was forced to book a hefty charge as it refocused the business.

Pre-tax losses more than doubled to £49.2m for the six months to June from £22.9m a year earlier, on group turnover down slightly at £60.4m in the period from £61.4m last time.

The hefty losses follow exceptional costs totalling £50.2m, of which £21m came from a 'one off' charge in respect of Scarlett Retail and £28.3m in respect of the disposal of investment properties.

Pre-tax profit before exceptionals came in at £1.0m compared with £0.7m, while adjusted net asset value per share was 345.0p, down from 374.7p.

Chief Executive Salmaan Hasan said, “By taking decisive action we have completely reshaped Minerva which now has over £200m of cash, virtually no net gearing, three outstanding development opportunities, a significantly strengthened Board and substantial capacity for new deals.”

The interim dividend for the year goes up by 1.6% to 3.25p per share from 3.20p.
Quote:
Originally Posted by jef
I never suggested that. What I pointed out is that this is the third proposed skyscraper to be scrapped since the beginning of this year - reflecting below average office demand from large corporates and financials.
Sorry to contradict you but initial work has started on Heron (see the thread) and Columbus had not been cancelled.

Oh and if your not suggesting that other projects will be cancelled why mention LBT, which already has a major tenant.

Quote:
Originally Posted by jef
What skyscrapers (150m+) are you talking about? Let me know what i missed.
Here's a few recent London Developments

http://www.emporis.com/en/wm/ci/bu/cs/?id=100637

As for other developments, Stratford, Elephant and Castle and White City all spring to mind.

Although if your just talking about Skyscrapers, then London has built more in the last five years than in the last fifty and the same can be said for building projects.

Wherver you go in London there is some major project going on whether it is transport, office, residential or leisure.

The Ontario Tower, Willis Building and Pan Peninisula will also be great additions to the London Skyline.

Btw whats your problem, as compared to Brussels even Huddersfield seems interesting

Last edited by Day Release; September 20th, 2005 at 04:30 PM.
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Old September 20th, 2005, 04:21 PM   #10
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OH MY GOD why do you always say "oh no LBT is gonna be cancelled i know it will" when there IS NO REASON TO THINK THAT? LBT is perfectly fine and isn't having problems so stop being so damn pessamistic!
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Old September 20th, 2005, 04:30 PM   #11
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I am a banker and everyone involved in corporates lending will tell you that Minerva is a very wealthy real estate. This is also confirmed by his CEO when he is mentioning that Minerva has "over £200m of cash", "virtually no net gearing", and 40% increase in EBT.
Believe it or not, I do not mind at all.
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Old September 20th, 2005, 04:44 PM   #12
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Quote:
Originally Posted by jef
I am a banker and everyone involved in corporates lending will tell you that Minerva is a very wealthy real estate. This is also confirmed by his CEO when he is mentioning that Minerva has "over £200m of cash", "virtually no net gearing", and 40% increase in EBT.
Believe it or not, I do not mind at all.
I couldn't care what you are

Minerva probably have the £200 million from the liquidators following the sale of Minerva's Retail Arm Alders which went bankrupt last year

The company may have these assets but it is not likely to be taking major gambles until it is fully recovered, and as part of it's restructuring it is actrually looking to sell the land and planning permission for the Minerva project to raise even further capital.

Any one in the UK can tell you that Minerva has had a turbulent few years and that they are now trying to restructure and consolidate their position.
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Old September 20th, 2005, 04:49 PM   #13
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Quote:
Originally Posted by Day Release
Btw whats your problem, as compared to Brussels even Huddersfield seems interesting
Being agressive does not lead to anything. I love London, I love England and I want these projects to go forward as much as you.
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Old September 20th, 2005, 04:56 PM   #14
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Quote:
Originally Posted by jef
Being agressive does not lead to anything. I love London, I love England and I want these projects to go forward as much as you.
I am not concerned whether you love London or not, the fact is that Minerva's decision has no bearing on the future of LBT or any other London project.

Btw that was a joke and was not meant to be aggressive
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Old September 20th, 2005, 05:07 PM   #15
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heres a few facts about LBT - they have sold some of the apartments in it already, the top one cost 10 million. they have already rented out all the hotel space in it.
and heron being cancelled???? are you on the same planet as the rest of us jef. not only have they already started site works but they are INCREASING the original tower in height.
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Old September 20th, 2005, 05:23 PM   #16
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LBT seems the most likely to start hopefully construction will start summer 2007.
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Old September 20th, 2005, 05:29 PM   #17
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so, let me get this straight....will there potentially be a complete redesign of the minerva building???
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Old September 20th, 2005, 06:09 PM   #18
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Who knows????, all I know is that UK Forumers have a lot to be positive about, as in the last 5 years the UK has been totally transformed, and there are even more ambitious projects planned for the future.
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Old September 20th, 2005, 06:16 PM   #19
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nothing- I reckon it means they are slightly re-configuring the layout of the building so it can take mulitple tennants as their strategy of trying to get a major anchor tennant to make this there HQ has failed. Its encouraging to here they may go for a joint venture as im sure theres plenty of people who would like to get involed in a project that size.

Saying that this is Minervas 3rd plan for the site so who knows!?!? Its worth noting for all those ,including myself about this when this will start its worth remmebering if they built ther first option straight away years ago then we would have a 12-15 storey bulding on the site & we wouldn't be going on about this 50 storey one not starting. Also the Walbrook scheme has been waiting to go for longer than the Minerva building & thats finally going to start next year but nobody moans about this being on the sjelf for years because its not high rise. Thats the way the propery market happens- scheme get drawn up & may not be built till years later- Just have a look at some of the nt so tall ones being built now & seen when they were first proposed &then you will see the way the property market works.

Heron is a good example- they were ready to go in 2000/01 but due to the long drawn out PI they missed out on the last construction boom, then made an error with Norton Rose. The end result it probably wont be finished till 2009ish but what we will get is a taller tower.

One last point- Columbus isn't cancelled- Nobody knows whats going on with this for certain s the developers are rather secretive therefore were all frustrated. They could start tomorrow or they might never- But even if they dont theres consent for a large scheme on taht site & if they dont build it they will sell to someone who will.
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Old September 20th, 2005, 06:42 PM   #20
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Funny how a few years ago everyone was saying that the problem with the city was that unlike CW they could not offer buildings of 1msqft+. Minerva pops up to fill the gap and then everyone starts saying there is simply no demand for such large single lets in the city!

I can't see that there is so much work to be done to change the design for multi-tennant. Perhaps the lifts would be used slightly more as some people 'may' walk between floors when it is a single tennent. Bigger reception desk? Space in all modern buildings is normally very flexible.
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