REO announces €84m loss but now looks to Battersea development
Published 23/06/2011 | 11:08
Property firm Real Estate Opportunities (REO), which is owned by Johnny Ronan and Richard Barrett’s Treasury Holdings, has reported a £77m (€84m) loss for the year ended February.
This compares with a loss of £828m for the previous 14 months.
The value of REO’s Irish portfolio fell by 21.3pc to €585.6m from €743.8m and during the same period, the group's British portfolio value rose by 16.4pc from £433m to £504.6m.
It attributed the rise to the progress made towards securing planning permission for its Battersea Power Station development.
As part of its survival plan with NAMA, the company has agreed to spin off the Battersea development into a separate company.
REO plans to build 3,400 homes and 330,000 sq m of commercial space at the £5.5bn development.
The company bought Battersea four years ago for €600m and the first phase of the development is due to start in early next year.
The valuation of Battersea Power Station has risen by 17pc since early last year, a spokesman said.
He added: "We have made substantial progress over the last year.
“The successful completion of the restructuring of the balance sheet in May 2011 and the significant progress made towards securing planning permission for Battersea Power Station represents the first, important step in determining the group’s future."