REO first-half loss slashed to €52m

REAL Estate Opportunities (REO) – the international property development company controlled by Irish firm Treasury Holdings – has slashed its first-half pre-tax losses to £45.3 million (€52.2m), from just under £200.5m last year.

The London-based company’s loss-per-share figure for the six months to the end of August was 13.6p, down from 58p for the corresponding period last year.

REO, which is expected to complete the spin-off of its Battersea Power Station site in the new year, said the value of its overall property portfolio fell 4.3% to just over £1bn on a quarter-by -quarter basis, while its Irish portfolio fell by 5%.

“The group’s ability to ensure that no borrowing covenants are breached would be at risk from significant further declines in property values. Economic recovery remains fragile and further market dislocation may impact upon the group’s performance,” it said. “However, commercial property markets should respond in due course to wider economic conditions, with both Irish and British economies forecast to resume moderate rates of growth.”