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

BACKGROUND:NEWS FROM Real Estate Opportunities (REO) that it plans to spin off Battersea power station having booked a loss of close to £1 billion (€1.2 billion) for the 14 months to the end of February has thrown the spotlight on the financial health of the company, and that of Treasury Holdings, its majority shareholder.

Since the National Asset Management Agency (Nama) was launched, REO has been remarkably open and upbeat about its role in the process. The message from managing director John Bruder has been that, although the company’s loans will be among the first to transfer to Nama, none of the loans are distressed and overall Nama is a good thing both for the company and the economy. Yesterday’s announcement suggests that cracks may be beginning to show in the Treasury Holdings property empire.