Is UK Commercial Property Back In Favour?
News that UK commercial property company Minerva has agreed to be takeover, in principle at least, by a Dubai based company has sent the sector into orbit. After months of bad news and doom and gloom this seems to have caught the eye of 'bottom fishers' who like to pick up cheap asset after large falls. Whether the deal itself goes through, it is subject to a number of preconditions, is irrelevant for the whole property market but the fact someone has shown an interest is very relevant!
If the deal goes through it will value Minerva at £260 million, less than half the value the company was trading at only 12 months ago. However times have changed and investors are looking to release cash in troubled sectors and companies, and the takeover price of 160p is more than double the share price of 71p, prior to the announcement.
It seems as though both parties have been locked in talks for months, trying to agree a price without much luck. Finally the management of Limitless (the Dubai backed takeout company) decided to table a take it or leave it cash offer of 160p After deliberating over the deal the directors have reluctantly decided to accept the deal in principle, but whether it actually goes through at that price remains to be seen.
Share this..
Related stories
The FTSE 100 benefits despite signs of fiscal tightening
Despite concerns that the UK stock market would run out of steam after the Chinese authorities decided to tighten fiscal policy it would appear this is not the case at the moment. While the UK authorities have yet to increase interest rates we have seen the quantitative easing programme suspended and indeed the US government has tweaked a non-key interest rate higher. So why is the UK stock market...
Read MoreThomas Cook parent company files for bankruptcy protection
The parent company of UK holiday operation Thomas Cook has today filed for bankruptcy protection in Germany after failing to agree terms with the German government with regards to a financial bailout. The Arcandor Group owns a range of well-known operations in Germany including Thomas Cook, a number of department stores and a mail-order business. The writing has been on the wall for some time with...
Read MoreTenants warned of landlord scams
Tenants up-and-down the UK have this week been warned of potential landlord scams by the housing charity Shelter. It seems that up to a million people in the UK could already have fallen victim to landlord scams which could see deposits retained, excessive fees for work, unlimited guarantees given instead of deposits and one of the most alarming scams which involves crooks break into empty propert...
Read MoreSellafield joins the wildcat strikes
As predicted, a number of new wildcat strikes have emerged today in response to the government's firm approach to the problem of foreign workers in the UK. Gordon Brown and Lord Mandelson stand accused of a heavy-handed approach to the problem at the weekend when they gave no hope or support to the reunions or employees of the UK. There are concerns that the thousands of UK workers now on picket l...
Read MoreBarclays Capital sparks fears of Irish collapse
A report by Barclays Capital have created further turmoil in the money markets with a suggestion that the Irish economy is on the verge of collapse and the government may well need an injection of billions of pounds from the international community. There are also reports that the European Central Bank has been forced to buy Irish government bonds amid concerns that the budget deficit is running o...
Read More