Debt-laden Real Estate Opportunities said this week that its future as a going concern is reliant on Ireland’s National Asset Management Agency and other lenders renewing expiring bank facilities.
However, at its interim results for the six months to 31 August, the group said it was confident it would get Nama’s approval for its business plan and a deal with an equity partner for its Battersea Power Station scheme.
REO, which is majority-owned by Treasury Holdings, said that it is reliant on the “bad bank” renewing £780m of loan facilities on similar terms, deferring interest payments and providing working capital.
Its business plan also depends on REO securing planning permission at Battersea in “the near future” and bringing in an equity partner to provide project financing.
REO had debts of £1.66bn against assets valued at £1.05bn at 31 August. It has reached agreement with its banks, including Nama, to extend the £225m Battersea Power Station loan to 31 August 2011 and with loan note holders to defer principal and interest payments until 31 May 2011.
In depth: Tax increment financing, page 54
paul.norman@estatestgazette.com
