REO says properties have 'robust income stream'

THE TREASURY Holdings-backed property investment vehicle, Real Estate Opportunities (REO), said yesterday that the business is continuing to perform well, despite the recession.

REO owns Central Park office block in Sandyford, Dublin and Battersea Power Station in London.

Yesterday, its chairman, Ray Horney, said that although market conditions remain extremely difficult, REO continues to perform well because it has a broad tenant base and high-quality properties.

“The portfolio continues to maintain high occupancy, in excess of 95 per cent, and generate a robust income stream,” he said. Mr Horney added that any new developments that the company is planning are timed to come on stream once the market has stabilised.

At the beginning of 2009, thecompany had £441 million (€501 million) in loans due for repayment this year.

“The majority of loans are due towards the end of the year but the company had already successfully obtained lenders’ credit committee approval for renewal of over 30 per cent of these loans by March 2009,” REO said yesterday.

The group expects to submit a planning application for the master plan for its £4 billion redevelopment proprosals for Battersea Power Station in south London to the local authority there by the end of this year.

The Greater London Authority is expected to publish a planning framework for the area shortly. REO bought the property for €600 million in 2006.

Its properties were worth €2 billion at the end of December last, when the strength of the euro offset a 16 per cent fall in their value. Its portfolio will be valued again at the end of June. REO is majority-owned by Treasury Holdings, which in turn is controlled by Irish businessmen Johnny Ronan and Richard Barrett.