REO - Interim Management Statement19 Jan 2011 09:19
RNS Number : 4599Z
Real Estate Opportunities PLC
14 January 2011
REAL ESTATE OPPORTUNITIES PLC
INTERIM MANAGEMENT STATEMENT
Real Estate Opportunities plc ("REO" or "the Group"), the real estate investment and development group active in the UK and Ireland today issues its Interim Management Statement covering the period from 30 October to the date of this announcement.
Highlights:
· Battersea Power Station Planning Application approved by Mayor of London and Wandsworth Council
· Significant interest from prospective investors in Battersea Power Station during the global investment roadshow
· Terms of Balance Sheet Restructuring announced on 24 December 2010
· Memorandum of Understanding signed with NAMA on Group business plan
· Continued strong operational performance with occupancy levels at 95% and rent weighted average lease length of 12 years
Ray Horney, Chairman of REO, said: "We are pleased with the progress we have made in recent months. The planning application for BPS is progressing well, while we are also making good progress towards balance sheet restructuring. We look forward to updating the market on further progress in due course."
Battersea Power Station: As previously announced, Wandsworth Council and the Mayor of London have both now approved the Group's planning application for the Battersea Power Station site. The application is currently being considered by the Secretary of State for Communities and Local Government, with a decision anticipated in the near future.
The approvals above represent a major step towards realising the Group's vision for the scheme, which has garnered significant support from various stakeholders including the Greater London Authority, English Heritage, the Commission for Architecture and the Built Environment (CABE) and most importantly, the local community.
It has always been the Group's development strategy to partner with a new investor, and we have already attracted significant interest from a range of prospective investors.
Construction on Phase 1 of the development is scheduled to commence in early 2012 with completion in 2016. The remaining phases, including the first ever privately funded extension to the tube network in Central London, are scheduled for completion thereafter.
Balance Sheet Restructuring: As announced on 24 December 2010, the Group's negotiations with its creditors regarding the terms of a financial restructuring are progressing well. Subject to approval from the various creditor groups, the detailed terms of the restructuring deal are as follows:
· Battersea Power Station would be transferred by REO to a new holding company. The demerger of Battersea Power Station is intended to facilitate the successful conclusion of the Group's global third party investment road show through which it is seeking to attract a long term equity partner into the demerged vehicle.
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