Now it looks like Bloomberg is close to signing a pre-let at Legal and General’s Walbrook Square: another one is about to bite the dust. Minerva’s silence on prospective tenants for its largest City development suggests it will be 2011 before a firm moves in.
An ever longer delay would be bad for cash flow, which is already a cause for concern. Cash flow from operating activity was -£45m in 2010, and an empty Walbrook would likely mean a further drain in the region of £10m a year, due to empty rates and service charges.
Minerva is right to point to the stellar growth in its net asset value since. But it doesn’t count for much if those assets are empty.