Sign up to The Irish Times Archive (1859 - 2008)My Account »

The Treasury Holdings-backed property vehicle, Real Estate Opportunities (REO) Net Asset Value fell by 7 per cent in the first half of 2008.

Net Asset Value (NAV) fell from 143.9p per share to 134.2p per share, it said today.

REO's property portfolio value grew by 4 per cent over the period to £1,848 billion benefiting from the strength of the euro against sterling. The company said its Irish portfolio performed in line with expectations.

"The significant volume of activity in both the development and investment portfolios experienced last year has continued into the first four months of 2008. A substantial emphasis has been placed on asset management and growing the value of the investment portfolio along with preparing development properties for their optimum use by maximizing development potential" a statement from REO said.

During the first half of the year, REO sold its 21.4 per cent stake in Dublin's Northside Shopping Centre to Brian O'Farrell for €29.7 million. It said this was a 60 per cent profit on what it paid for the stake last year.

The company has begun building an office block in Central Park, Dublin 18, a similar development in Barrow Street in the city centre and a retail and residential tower near Grand Canal Dock.

It is revising planning permission applications for housing at Kinsealy, Co Dublin, and Enniskerry, Co Wicklow.

“The directors are satisfied that, against an increasingly harsh economic environment in both Ireland and the UK, performance across the portfolio has been positive," said Ray Horney, chairman, REO. "

Despite a tough economic climate at present in both the UK and Ireland, the range of projects within the portfolio underpins the prospects for continuing growth in the medium term. Nevertheless, the general outlook for the remaining six months of 2008 is one of caution,” he added.