TREASURY HOLDINGS-backed Real Estate Opportunities (REO) is in talks with a number of investors interested in taking a majority stake in its Battersea Power Station project in London.

The company also confirmed yesterday that it is close to finalising its business plan with the National Asset Management Agency, to which it owes €900 million. The move could lead to the sale of some of its properties or the refinancing of part of its debts.

Treasury Holdings Ireland managing director John Bruder said REO was hopeful it would be able to recruit new investment for its planned redevelopment of Battersea Power Station, which it bought for €600 million in 2006.

REO has planning permission for a €6.5 billion redevelopment of the landmark building and area around it as a residential, shopping and commercial zone.

The property has been demerged from REO, which now owns just over 50 per cent of it, and it is in talks with investors interested in taking a stake in it.

The company did not name the potential investors.

The demerger of Battersea and the sale of a stake in it is part of a restructuring plan which REO started last year to tackle its debts.

The holders of two classes of preference shares in the company, who were owed £246 million (€276 million), have converted this to equity. Its banks have agreed to extend credit on Battersea on existing terms and its bondholders have deferred principal and interest payments to August.

REO has already signed a memorandum of understanding with Nama, which is effectively the outline of a business plan that will allow it to repay its debt to the State agency.

REO’s operations lost £77.1 million in the 12 months to February 28th, compared with a deficit of £828 million last year. The fall in losses was due largely to a reduction in writedowns.