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Minerva has announced the sale of its property located at 5 Welbeck Street, 42 Wigmore Street and 44-48 Wigmore Street, London W1 to Standard Life Investment Funds for a total of £40.75 mln (EUR 45.18 mln).

The sum represents a premium of approximately 20% to the property's book value of £33.9 mln at 30 June 2009. This compares to a net increase of 10% across the whole portfolio over the five months from 30 June to 30 November 2009.

Wigmore Street is a high-quality office building in the West End of London, providing accommodation totalling 13,319 m² and let to Minerva Corporation, First Secretary of State and Nicholas Anthony. The property generated an annual rental income of about £2.3 mln in the last financial year.

The disposal will further strengthen Minerva's financial position following the successful amendment of its debt facilities announced on 22 September 2009. Approximately £24 mln of the proceeds from the sale will be used to repay outstanding debt and the balance, net of transaction costs, will be added to company's cash reserves.

Commenting on the disposal, Salmaan Hasan, CEO of Minerva, said: 'This disposal of a non-core asset is another key milestone achieved by Minerva as the market recovers and as we continue to make progress. The premium valuation achieved of 20% to the book value as reported at 30 June 2009 is further evidence of improving market conditions in the London property sector.

'This sale follows the successful amendment of Minerva's debt facilities, and represents a further step in strengthening our financial position. Minerva continues to focus on its strategy of delivering increased value to shareholders, and we will consider divesting additional non-core assets to enhance our financial flexibility.'

Minerva also announced it has rejected an offer by KiFin to take over the company at 50 pence per share, saying the offer significantly undervalues Minerva. An independent external valuation of the company's property portfolio, prepared by CBRE values Minerva's property portfolio at approximately £1 bn as at 30 November 2009.