Business Irish

Friday 22 September 2017

Treasury's €5.5bn Battersea project to be sold

Nick Webb

Nick Webb

Treasury Holdings massively ambitious but ultimately doomed plans for a €5.5bn development of the iconic Battersea Power Station in London might have worked . . . if they'd simply knocked down the building.

Consultancy firm EC Harris has estimated that around €570m could have been hacked off the cost of the plan if the power station had been demolished and homes built on the site, rather than a attempting a hugely expensive renovation programme.

The new figures will be painful for Treasury Holdings founders Johnny Ronan and Richard Barrett, who lost control of the project before Christmas. Nama and Lloyds Bank are now in the driving seat and are planning to sell the site. Formal sales documents are expected to be sent out to potential buyers in the next fortnight.

Malaysian group SP Setia, which had an offer rebuffed by Nama and Lloyds last year, may still be interested. Land Securities, Capital & Counties and British Land have also been suggested as possible buyers, with interest also likely from Russian, Middle East ern and Asian investors.

Treasury Holdings' challenge to the appointment of receivers to certain assets is due before the High Court on Tuesday.

Australian investment firm Macquarie and Hines Real Estate LLP made an attempt to buy up to €900m worth of Treasury Holdings loans from Nama but the move was unsuccessful.

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