(Adds Limitless bid in sixth paragraph, Minerva’s latest estimate of net asset value in seventh.)
By Simon Packard
Jan. 8 (Bloomberg) -- Nathan Kirsh abandoned his bid for London real estate developer Minerva Plc after fewer than 1 percent of shareholders accepted the offer.
KiFin Ltd., an investment vehicle controlled by Kirsh, didn’t improve or extend its 50 pence-a-share offer by today’s 1 p.m. deadline, according to a statement announcing that the offer had lapsed. It was the last opportunity to do so under U.K. takeover rules.
Investors bet Kirsh would be forced to raise his offer after Minerva’s management dismissed the bid as “derisory” and said it “significantly undervalues the company.” The shares closed yesterday at 76 pence, almost double the price on Nov. 16, the day before KiFin announced its offer.
Thursday, January 14, 2010
Wednesday, January 13, 2010
Lloyds' Invista Real Estate In Offer Talks
LONDON (Reuters) - Invista Real Estate , a property fund manager majority controlled by Lloyds Banking Group, said on Monday it is in talks with a third party which may lead to a takeover offer, sending its shares sharply higher.
At 1:42 p.m., shares of Invista were up 43 percent to 72 pence each, giving the company a market capitalisation of about 191 million pounds.
"These discussions are at a highly preliminary stage and there can be no certainty that any offer will be made," said Invista, which is 55 percent-owned by Lloyds' HBOS Plc.
The potential takeover of Invista, whose next biggest shareholder is the Wellcome Trust with 24 percent, follows the RBS's sale of its non-core asset management businesses to Aberdeen , as part of its overhaul following the government rescue.
At 1:42 p.m., shares of Invista were up 43 percent to 72 pence each, giving the company a market capitalisation of about 191 million pounds.
"These discussions are at a highly preliminary stage and there can be no certainty that any offer will be made," said Invista, which is 55 percent-owned by Lloyds'
The potential takeover of Invista, whose next biggest shareholder is the Wellcome Trust with 24 percent, follows the RBS's
Saturday, January 9, 2010
Big Lenders Take Stake in London Brokerages
riday, January 8th, 2010, 12:56 pm
Under the terms of a debt refinancing deal, Bank of America (BAC: 16.78 -0.89%) Merrill Lynch (BofA) and Japanese bank Mizuho will now jointly own a majority stake in the private equity firm that owns London-based mortgage brokerage Alexander Hall and real estate brokerage Foxtons, a source at Merrill Lynch confirmed to HousingWire.
In 2007, Mizuho financed £260m (US $416.2m) of the £360m leveraged buyout of Alexander Hall, the mortgage brokerage, and Foxtons, its sister real estate brokerage. Private equity firm BC Partners acquired the two companies using funding from Mizuho and BofA.
The restructuring arrangement cuts Foxtons’ debt from about £300m to £120m. Both banks will reportedly appoint representatives to sit on the company’s board, creating an atypical arrangement for a lender to assume control of the company to satisfy debt.
Under the terms of a debt refinancing deal, Bank of America (BAC: 16.78 -0.89%) Merrill Lynch (BofA) and Japanese bank Mizuho will now jointly own a majority stake in the private equity firm that owns London-based mortgage brokerage Alexander Hall and real estate brokerage Foxtons, a source at Merrill Lynch confirmed to HousingWire.
In 2007, Mizuho financed £260m (US $416.2m) of the £360m leveraged buyout of Alexander Hall, the mortgage brokerage, and Foxtons, its sister real estate brokerage. Private equity firm BC Partners acquired the two companies using funding from Mizuho and BofA.
The restructuring arrangement cuts Foxtons’ debt from about £300m to £120m. Both banks will reportedly appoint representatives to sit on the company’s board, creating an atypical arrangement for a lender to assume control of the company to satisfy debt.
Thursday, January 7, 2010
U.K. Commercial Property Investors to Get Price Relief in 2010
By Simon Packard
Jan. 7 (Bloomberg) -- Commercial property investors in the U.K, battered by more than two years of price declines, are likely to get relief in 2010. It may be short-lived.
Values of stores, offices and warehouses will rise 7 percent this year, according to the median estimate of 10 fund managers overseeing 65 billion pounds ($105 billion) of buildings in the U.K. Predictions ranged from a gain of as much as 15 percent to a 19 percent decline.
The global financial crisis pushed Britain into its longest recession on record, driving property values down by 44 percent from a mid-2007 peak, boosting vacancies and depressing rents. While lower values have revived investment demand, price increases may not last beyond the first half as lackluster economic growth forces tenants to cut jobs and demand rent reductions.
Jan. 7 (Bloomberg) -- Commercial property investors in the U.K, battered by more than two years of price declines, are likely to get relief in 2010. It may be short-lived.
Values of stores, offices and warehouses will rise 7 percent this year, according to the median estimate of 10 fund managers overseeing 65 billion pounds ($105 billion) of buildings in the U.K. Predictions ranged from a gain of as much as 15 percent to a 19 percent decline.
The global financial crisis pushed Britain into its longest recession on record, driving property values down by 44 percent from a mid-2007 peak, boosting vacancies and depressing rents. While lower values have revived investment demand, price increases may not last beyond the first half as lackluster economic growth forces tenants to cut jobs and demand rent reductions.
Tuesday, January 5, 2010
Decrepit London landmark shows property pain
LONDON (Reuters) - A gust of wind howls around Battersea Power Station, an industrial wasteland by the Thames whose coal-fired furnaces were once used by the Bank of England to burn millions of pounds worth of banknotes.
Housing Market | Lifestyle
A couple of tourists who have ventured off the beaten track around Buckingham Palace stand on tiptoe as they strain to photograph the gargantuan structure over a high screen.
As debt-laden developers face the ruins of recent extravagance, the Power Station -- Europe's largest brick building -- is a decrepit symbol of the past profligacy and present pain in Britain's real estate market.
In World War Two the central bank turned to Battersea to burn 120 million pounds of notes it had not had time to cancel as it introduced a new design against feared enemy forgeries.
Housing Market | Lifestyle
A couple of tourists who have ventured off the beaten track around Buckingham Palace stand on tiptoe as they strain to photograph the gargantuan structure over a high screen.
As debt-laden developers face the ruins of recent extravagance, the Power Station -- Europe's largest brick building -- is a decrepit symbol of the past profligacy and present pain in Britain's real estate market.
In World War Two the central bank turned to Battersea to burn 120 million pounds of notes it had not had time to cancel as it introduced a new design against feared enemy forgeries.
Sunday, January 3, 2010
Commercial sales red hot
The commercial real estate market in London and area ended 2009 with a bang.
After a dismal 18 consecutive months, the industrial market has taken off with sales and leasing topping $1 million in the last three months, said Peter Whatmore, senior vice-president of CB Richard Ellis, a commercial real estate firm.
"It is very exciting news," said Whatmore. "It has been such a challenging time but I feel confident we are in a recovery mode. It is slowly and steadily moving forward.
"This is a lot better than plant closings."
New businesses have been moving to the ING building on Roxborough Rd., which has leased about 100,000 square feet -- half of its available space. There are also new tenants on Highbury Ave., leasing more than 100,000 square feet of industrial space.
After a dismal 18 consecutive months, the industrial market has taken off with sales and leasing topping $1 million in the last three months, said Peter Whatmore, senior vice-president of CB Richard Ellis, a commercial real estate firm.
"It is very exciting news," said Whatmore. "It has been such a challenging time but I feel confident we are in a recovery mode. It is slowly and steadily moving forward.
"This is a lot better than plant closings."
New businesses have been moving to the ING building on Roxborough Rd., which has leased about 100,000 square feet -- half of its available space. There are also new tenants on Highbury Ave., leasing more than 100,000 square feet of industrial space.
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