REO provides upbeat trading statement to market

THE Irish-controlled property development company, Real Estate Opportunities (REO) has provided an upbeat trading statement to the market, citing a stabilisation in Ireland’s commercial property market, the progress made on its Battersea Power Station project in London and the work done towards restructuring its balance sheet as signs the company is in a good position.

“Based on … the group’s quality portfolio and strength of senior management, the board remains confident that the group is positioned to benefit from predicted stability and growth in the wider Irish and UK economies,” the company said.

The Treasury Holdings controlled REO — which is set to be separated from the Battersea project, once the final green light is given to the €5.5bn build — said that it has attracted “significant interest from a range of prospective investors” for the Battersea site, which has already been approved by Wandsworth Council and London Mayor Boris Johnson’s office, with only the Secretary of State for Communities and Local Government to sign off on it now.

Away from the London project, REO has said it has seen continued strong operational performance, since the end of October, with occupancy levels at 95% and only 4% of rent roll in arrears, despite the challenging trading environment; while it has singed a memorandum of understanding with NAMA on its business plan.

NAMA will monitor REO’s ongoing performance to ensure it adheres to targets contained in the business plan it outlined to the agency last May.

“The planning application for Battersea is progressing well, while we’re also making good progress towards balance sheet restructuring. We look forward to updating the market on further progress in due course,” REO chairman Ray Horney added.