Two Minerva Deals Total $1B

LONDON-Minerva has completed two deals totaling euro 915 million ($1.2 billion). The first is a joint venture with Lend Lease for the development of the Park Place shopping centre in Croydon, south London. The second, is the sale of the trophy building at 90 High Holborn in the West End to German open-ended fund KanAm Grundinvest Fonds.

The euro 720-million ($948-million) Park Place scheme was granted detailed planning permission in May 2004. The idea is to provide 900,000 sf of new retail and restaurant facilities in Croydon town centre. The development is due for completion in 2010 and both parties are taking a 50% stake.

Minerva has also sold the 180,000-sf block at 90 High Holborn for euro 194.5million ($256 million). Proceeds from the sale will be used to pay down debt and for general corporate purposes.

Andrew Rosenfeld, chief executive of Minerva, says about the Croydon JC: "We are looking forward to working with Lend Lease, who are one of the world's leading shopping centre specialists. As they have demonstrated at Bluewater and elsewhere throughout the UK, they will provide the joint venture with a broad combination of retail development, construction, financing and leasing skills, which will ensure the long term maximization of value for Park Place."

And on the sale of 90 High Holborn he notes it "is in line with Minerva's year-end valuation and is consistent with our strategy of selective disposals. This sale will, inter alia, reduce gearing and facilitate further investment in opportunities which can create superior returns to shareholders."

Minerva is planning a series of sales from its portfolio after failing to sell itself for euro 720 million ($948 million) at the beginning of the year. Other assets up for sale include the 120,000-sf Criterion Building, Piccadilly Circus, W1; the 175,000-sf Ludgate House on Blackfriars Road, SE1 and the 385,000-sf Sampson House, SE1.