Minerva has bought a prime residential development site in London’s Wandsworth for £69m
The quoted developer has bought the former Young’s Ram Brewery site, beating competition from several parties including the Resurgo consortium, backed by the Royal Bank of Scotland.
The £69m purchase price comprises a £14m deposit payable today; an £8.5m instalment payable in June 2007 on completion of the sale of the Buckhold Road element of the brewery site; and £46.5m payable in January 2008, on completion of the sale of the brewery site.
Under the terms of the deal, the quoted developer has agreed to give Young’s the right of first refusal on 20,000 sq ft (1,858 sq m) of offices that it might opt to develop on the site, as well as the right to occupy any licensed premises built on site.
Salmaan Hasan, chief executive of Minerva, said: ‘This significant acquisition presents the group with an exciting development opportunity, utilising our core skills and expertise.’
In a statement, the Young’s added: ‘The board believes that the disposal, together with the creation of Wells & Young’s [following Young’s merger with brewer Charles Wells], will drive a step-change in the company’s financial performance, and that the substantial amount of capital released over the next 18 months will enable significant investment in the growth opportunities open to the company.’