Limitless mulling move for Minerva.

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Dubai developer Limitless yesterday said it was considering a takeover offer for property company Minerva, sending the UK firm's share price soaring.

Limitless, part of state-owned conglomerate Dubai World, said in a statement it had not made a formal approach to Minerva's board and that it was in the "very preliminary stages of considering its options".

Shares in Minerva were up more than 23 per cent at 124 pence ($2.43) in morning trade as investors hoped to benefit from signs of emerging foreign investor interest in central London's battered real estate market. The price fell to 115.25 pence later in the day. Limitless released a statement saying it "notes the recent movement in Minerva's share price" and confirmed it was weighing up a bid for the company. It added that no decisions had yet been made.

"There has been no formal approach to Minerva's board and there can be no certainty that any offer will be forthcoming nor as to the terms on which any offer might be made. A further announcement will be made in due course, as appropriate," the statement added. Minerva owns two development schemes in London's City financial district and is building a major shopping centre in Croydon, on the southern tip of Greater London.

Commercial property prices in the UK have fallen sharply since the start of the global credit crunch compared with other real estate markets. Valuations on average have been slashed by 16 per cent since last summer but the British capital remains popular with Gulf investors because of its high international profile.

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