Property company REO has begun to move nearly €900m of its loans
REAL Estate Opportunities (REO), the London-listed property company controlled by Irish developers Johnny Ronan and Richard Barrett, says loans worth €896m have begun moving into the National Asset Management Agency (NAMA).
The Jersey-based company's developments include Battersea Power Station in London and a proposed shopping centre in Ballymun, Dublin, that the developers say will become the country's biggest mixed-use shopping centre.
Loans extended to the State's most indebted developers began moving into NAMA this week after the agency announced the discounts it would pay on loans.
REO will now repay NAMA and not the banks.
The company made the announcement to the stock exchange yesterday; it is the only publicly quoted company linked to the top 10 developers whose loans have begun moving into NAMA.
"These loans are from Allied Irish Bank, Anglo Irish Bank, Bank of Ireland and Irish Nationwide, and amount to €896m of a total of €1.49bn of the company's outstanding bonds and loans," REO chairman Ray Horney said in the statement.
"We are pleased with the statement from the Finance Minister (Brian Lenihan) regarding NAMA, which outlines definitive action to return strength and stability to the Irish banking sector and the consequent positive effects on the Irish economy," he added.
Shares in REO inched up 1.5pc to 16.5p in London, giving the company a market value of £55m (€61.9m) or less than one-10th of the value of the loans moving into NAMA.