Property group Minerva has strengthened ties to retailer Allders by taking its stake in the department store chain to 25 per cent.

Minerva held 21.4 per cent of Allders in June when speculation linked it to a possible joint bid with former Bhs chief executive Terry Green.

It has since upped its stake in Allders, which will be Minerva's anchor tenant in a flagship development in Croydon, but said the increase merely represented a good investment.

The stake is worth about £22 million.

Minerva, which specialises in commercial property, denied the earlier report suggesting it would buy Allders and lease stores back to Mr Green.

Allders, which has stores in Crawley and Chichester, was in the spotlight last week as shares fell 12 per cent following a surprise profits warning.

Announcing full-year results, Minerva said it had overcome market uncertainty to increase net rental income 5.2 per cent to £43.9 million.

Profits before the sale of investment properties rose to £6.3 million from £5.7 million.

Minerva said it been helped in the current climate by investment income from high quality tenants at prestigious central London locations.

Risk linked to speculative development has been reduced by the full leasing of two high-profile properties.

Chief executive Andrew Rosenfeld said: "The property investment market remains strong, particularly for those properties with secure long-term income, which is a main feature of Minerva's asset base."

As well as progressing the Croydon development, Minerva has recently submitted plans for a 49-storey office building in the City of London.