Sunday 4 December 2016

REO's Battersea site adds on 13pc

Emmet Oliver

Published 12/04/2011 | 05:00

THE value placed on the Battersea Power station project, owned by Real Estate Opportunitities (REO), has risen by 13pc to £498m in less than a year.

  • Go To

Yesterday REO outlined a restructuring package for its debt, which will see creditors, including NAMA, giving the company forebarance as it seeks to spin off Battersea into another vehicle.

Many of its loans are in breach of covenants, but lenders appear willing to work with the company rather than taking enforcement action. Some of the lenders could be paid a forebearance fee under certain scenarios.

The Battersea project, which recently got planning permission, was valued at £440m last August, but this has now risen to £498m. REO, where Treasury Holdings owns the largest stake, has now invited creditors to a meeting, and yesterday sent out a circular outlining the terms of its offer. The chances of success seem good with many of the creditors already indicating support for the scheme.

"The restructuring also has the support of the company's directors and Treasury Holdings, who together hold 67.4pc of the ordinary shares,'' said a REO statement.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business