NAMA will extend REO's Battersea loans for year
NAMA, the State's asset management agency, has agreed to let Real Estate Opportunities (REO), controlled by Treasury Holdings, extend its Battersea Power station loans until next August as debt negotiations continue.
REO, which owns assets in Ireland and Britain, breached loan-to-value covenants in February and has been working with lenders to get waivers to deal with this since then.
The company has a £225m loan on Battersea, in central London, with Bank of Scotland and Bank of Ireland. There is also a £37.5m loan relating to site clearance, also with Bank of Scotland. All of these loans have now been extended to August 31, 2011 and Bank of Ireland took its decision on foot of advice from NAMA. All of the breaches by REO have been waived by the lenders.
However, the agreement is conditional on REO reaching agreement with other lenders during October. These are holders loans notes and unsecured loan stock. An agreement will also be required with investors who hold preference shares with one of REO's subsidiaries, known as REO Securities.
"Negotiations are ongoing with these parties and a further announcement will be made,'' said a REO statement.
"We would like to thank our lenders for their ongoing support, which we believe reflects their commitment to our development proposals for Battersea Power Station,'' said REO chairman Ray Horney.