NAMA waives Battersea debt deadline

THE National Asset Management Agency (NAMA) and other lenders to the Irish owners of the Battersea Power Station in London waived a debtmaturity deadline yesterday while talks with potential new equity partners for its redevelopment continued, a source close to theprocess has revealed.

AIM-listed Real Estate Opportunities (REO) is seeking a partner for the £5.5 billion (€6.25bn)development, and its senior lenders Lloyds and NAMA have already extended a deadline once relating to the £400 million REO paid for the site in 2006.

“The banks have nothing to gain by calling the debt in,” the source said.

“Talks with new equity partners continue, and an announcement may come in the next few weeks,” the source added.

The 10.1 million sq ft redevelopment involves an extension to the Northern Line underground railway, and the construction of thousands of homes, as well as retail and office space.

REO has spoken to sovereign wealth funds, private equity firms, wealthy families and property companies about taking a stake.

There is a shortlist of four or five parties, the source said.

Battersea’s imposing white brick chimneys have been a feature of London’s skyline for almost 80 years. However, schemes to redevelop the site have repeatedly run aground since power production ceased at the facility nearly three decades ago.

The Battersea project is one of the largest regeneration proposals being considered in the British capital.

The regeneration project is expected to provide up to 25,000 jobs, with about 15,000 people working within the station.