Minerva has announced that, subject to and conditional upon shareholder approval, it has entered into an agreement with Lend Lease Europe for the development of Park Place, a major new 900,000 ft² retail development situated in Croydon town center.
Under the terms of the agreement Lend Lease will be responsible for project, development and asset management throughout the life of the scheme and Bovis Lend Lease will undertake the construction.
One year after practical completion Lend Lease will have the right to subscribe for 50% of the units in a newly created Jersey unit trust which Minerva has set up to own the development. The acquisition price, payable in cash, will be based upon the net asset value of the trust at that time.
As a consequence of this agreement Minerva has created a joint venture which provides a comprehensive framework for the delivery of the Park Place project and in so doing has enhanced the potential for the creation of future shareholder value.
Details of the transaction will be contained in a circular which will be posted to shareholders shortly.
Salmaan Hasan, CEO of Minerva, said: "This agreement is a milestone in the development of the Park Place project. It provides Minerva with a partner of world class repute who will be responsible for the delivery of what will be one of the UK's most important shopping malls."
Jeff Peers, Head of Development at Lend Lease Retail, said: "Lend Lease is very pleased to have concluded this agreement and we look forward to successfully delivering the development in partnership with Minerva. Park Place is a very exciting development and one that we expect will transform Croydon and its current retail offer."