Nama in Abramovich talks on Chelsea moving to Battersea

THE NATIONAL Asset Management Agency (Nama) has held discussions with representatives of Russian billionaire Roman Abramovich on taking over the Battersea power station site in London as part of his plans to move his football club, Chelsea.

The site is owned by Real Estate Opportunities, the listed company which is majority controlled by Treasury Holdings, the property company owned by developers Johnny Ronan and Richard Barrett.

Nama and Lloyds Banking Group are the lenders to the London property, which was acquired by Real Estate Opportunities for €600 million in 2006.

They have a key role in the future of the site, as a £250 million loan on the property matured at the end of August and can be called to be repaid on demand, according to REO.

A spokesman for Chelsea told the Sunday Telegraph the club had “talked to various people with interests in Battersea power station but we haven’t had any substantial discussions with anyone with regards to that particular site for several months”.

A spokesman for Nama told The Irish Times it had no comment on Mr Abramovich’s reported interest in the site.

Other expressions of interest are believed to have been made to Nama about the future development of the site, but Chelsea’s interest is said to be “credible” despite not being currently live.

The low-capacity of Chelsea’s current ground, Stamford Bridge, which can accommodate 42,000 – about 30,000 fewer than its Premier League rivals Manchester United – has prompted Mr Abramovich’s interest in moving the stadium to a new site.

REO is also reported to be close to completing a deal with an alternative overseas investor to buy the debt on the London site.

The company said last month it was near to finalising terms for the repayment of €900 million of debt to Nama, which has taken over €74 billion of property and associated loans from Irish banks.

The Telegraph reported that Mr Abramovich was believed to have explored building a new leisure and retail complex alongside a new Chelsea stadium on the site.

A director at REO in charge of the site, Rob Tincknell, poured cold water on the idea, saying the stadium would not fit on the site as this would require demolition work on a listed building and “a 10-year planning battle”.

The company borrowed money from Bank of Ireland and British bank HBOS to buy the London power station, which has lain dormant since 1983, before Nama acquired Bank of Ireland’s loan last year. Lloyds took over HBOS.

REO has planning permission for a €6.5 billion redevelopment of the building and the surrounding area into 7 million sq ft of residential properties, offices and shops.