Ireland’s National Asset Management Agency has enlisted Deloitte to look over a business plan submitted to it by Battersea Power Station owner Real Estate Opportunities.
Some £815m of REO’s debt was transferred to Nama in April. It was then given a month to submit proposals to the Irish bad bank outlining its three-year business plan.
The plan assumes that Nama will renew REO’s existing banking facilities, defer interest payments and provide further working capital.
However, its success hinges on planning being granted for the £5.5bn redevelopment of Battersea Power Station, SW8.
REO last month announced plans to demerge Battersea into a separate listed vehicle.
REO this week told bondholders: “A business plan has been submitted to Nama and is currently being reviewed, a process expected to be concluded by September.”
Nama has promised to “rigorously assess each borrower’s viability” and to provide investment for some projects to reach completion.
However, it warned that any project that was no longer commercially viable would not be allowed to proceed.
samantha.mcclary@estatesgazette.com
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