TREASURY HOLDINGS-backed Real Estate Opportunities (REO) is close to finalising terms for the repayment of its €900 million debt to State assets agency Nama.
The listed property group signed a memorandum of understanding with Nama in December, and REO’s chairman Ray Horney said yesterday that it recently received a term sheet from the agency. He added both parties are now working towards finalising these terms, and binding facilities agreements, in the near future.
Mr Horney said that while finalising terms with Nama will secure its short-term funding requirements, the group “will need to realise and/or refinance assets in order to discharge liabilities owed to various creditors”.
The group is working on bringing investors into one of its assets, the Battersea Power Station complex in London, which it bought in 2006 for €600 million.
During its first half, REO completed the restructuring of its balance sheet. This included exchanging £246 million of liabilities due to holders of convertible loan stock and preference shares for equity in both REO itself and BPSSV, the new holding company for Battersea.
This left it with an accounting profit of £227 million for the six months ended August 31st, compared with a loss of £45 million during the same period last year.
