Real Estate Opportunities returns to profit in first half
The figure for the UK/Irish-focused company — which is controlled by Treasury Holdings — represents a significant return to profit for the period.
In the first half of the company’s last financial year, REO posted a pre-tax loss of just over £47.4m.
Chairman Ray Horney said that final full planning approval for the company’s ambitious redevelopment plans for the Battersea Power Station site in London and the successful restructuring of the company’s balance sheet represent “progressive steps” towards securing the group’s future; while the finalisation of binding legal terms with NAMA “will secure the group’s short-term funding requirements”.
However, Mr Horney added: “The current trading environment remains challenging and the group will need to realise and/or refinance assets in order to discharge liabilities owed to various creditors. The group remains committed to achieving these outcomes over the coming years.”
Between the end of REO’s last financial year, at the end of February, to the halfway point in its current year, at the end of August, the group’s property portfolio decreased in value by 1.3%.
Over the same timeframe, there was a 6.6% drop in the value of its Irish-based portfolio.
However, the group has reported consistently high occupancy rates of 95% with no material defaults to date.
