Minerva and CBRE in the news
More major property deals are on the cards: Minerva told the Stock Exchange on Friday that it is in very early discussions that may lead to a take-over, while CBRE has reportedly become the favourite to acquire most or all of ING’s real estate operation, in a move that would create the world’s largest property funds business.
This is the third time in a little over two years that Minerva has entered takeover talks. In 2009 it rebuffed a hostile bid from 29.5% shareholder KiFin, while in 2008 a 180p-per-share bid from Dubai company Limitless ended with the collapse of Lehman Brothers. Talk in the City is that funds sense an opportunity, given the sharp rise in property values in London. Minerva owns extensive office space at St Botolphs and Walbrook in the City, among other properties.
CBRE has been in talks with ING since the start of the year about acquiring its property management business in a deal valued at about EUR 1bn. If it succeeds in buying the operation it is expected to merge it with its own fund management platform, called CBRE Investors, to create a business with more than $100bn of assets under management. If the deal goes through CBRE would become the world’s largest property investment manager as well as the largest property adviser, the FT notes.
