REO and Treasury Holdings, the owners of Battersea Power Station, have completed a debt restructuring deal that will see it relinquish majority ownership of the development.
A new £500m vehicle called BPSSV will be created to own the power Station, in which Treasury Holdings will retain control of around 42%.
REO, 67% owned by Irish company Treasury Holdings, is undertaking a series of debt-for-equity swaps across the business to relieve its debt position.
Part of the restructuring plan involves a debt-for-equity swap, one of which will see the company transfer 54% of the power station to its creditors.
REO said yesterday it would ask shareholders to approve the proposals at an extraordinary general meeting in May.
REO bought Battersea Power Station in 2006 for €600m – it said it was valued at £498m at the end of last year.
NAMA has agreed to hold off on calling in a €95m guarantee given by REO in relation to some of its Irish properties for one year after the restructuring is completed. REO owes the agency about €900m.
The completed project would create more than 3,400 new homes across the 40 acre power station site.
helen.roxburgh@estatesgazette.com
