Wheres the bottom?23 Jun 2010 11:42
News out earlier pasted below, v quiet board - any ideas on bottom below, looks as though falling under all time low? Figs don't look good but supported by state - opinions?
By Anita Likus
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Troubled landlord and developer Real Estate Opportunities PLC (REO.LN) on Wednesday said it hopes to separate London's Battersea Power Station from its other assets to help it find a new backer to finance the development.
According to a person close to the situation, REO is currently in talks with a number of investors who would be willing to buy into the redevelopment project, which would be one of the largest in central London.
REO in the past 18 months has been hammered by economic weakness in Ireland, which has savaged Irish property values. The company Wednesday reported a total portfolio valuation of GBP1.10 billion, down 43% from Dec. 31, 2008, and debt of GBP1.72 billion.
Some of its debt is held by the National Asset Management Agency, the Irish equivalent of the U.K.'s Asset Protection Scheme.
REO, which owns shopping centers and offices in Ireland, submitted a planning application last year for the landmark Battersea Power Station and hopes to get the green light from planners for the redevelopment of the building and the area surrounding it. The project will involve building residential space as well as commercial properties such as retail and offices.
REO has secured new terms on the Battersea Power Station loan facility, subject to completion of legal documentation. It has extended the existing Battersea Power Station bank facility with Lloyds Banking Group PLC (LLOY.LN), previously Bank of Scotland, and NAMA, previously Bank of Ireland, which have waived all outstanding breaches.
The Battersea Power Station was valued at GBP388 million at Feb. 28. That represents a 4% fall in value in the 14 months since December 2008, but a rise of 6% in the eight months since June 2009.
-By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; anita.likus@dowjones.com