Real Estate Opportunities has “completed and executed” the restructuring of its £225m loan facility on London’s iconic Battersea Power Station.
REO, which is majority owned by Irish developer Treasury, said in its annual report and accounts published on 23 June that the group’s sterling loan facilities, in respect of which a loan to value covenant was breached as at 28 February 2010, had been renegotiated, subject to completion of legal documentation.
REO today confirmed the documentation had been “completed and executed”.
The group’s £225m power station facility with Bank of Scotland and the Bank of Ireland (on behalf of the National Asset Management Agency) and £37.55m site assembly facility with Bank of Scotland have been extended to 31 August 2011 and all existing breaches have been waived.
The agreement is conditional on the company effecting a compromise by 1 October 2010 with the holders of the £150m series A and series B loan notes, including in relation to all principal and interest, and reaching a compromise by 29 October 2010 with the holders of the cumulative unsecured loan stock.
Under the facility agreements, the group will also need to effect a compromise with the holders of the zero dividend preference shares issued by REO Securities Limited. Negotiations are ongoing with these parties and a further announcement will be made in due course.
Ray Horney, chairman of Real Estate Opportunities, said: “We are delighted to have completed the renegotiation of this loan facility with new terms which are consistent with our announcement in June.
“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.
“Our development plans are progressing well and we look forward to updating the market on the planning process in the near future.”
AIM-listed REO Aim-listed Real Estate Opportunities is separately listing its Battersea Power Station development project.
It is seeking an equity investor to own 50% of the vehicle while REO would own the remaining 50%.
paul.norman@estatesgazette.com
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