LONDON’S MAYOR Boris Johnson has given the green light to Irish developer Real Estate Opportunities’ (REO) proposed redevelopment of the city’s landmark Battersea Power Station.
Treasury Holdings-backed REO bought Battersea four years ago for €600 million. State agency Nama owns part of the debt as Bank of Ireland was one of the institutions that financed the deal.
Yesterday, Mr Johnson announced his office has approved the €6.5 billion plan for the redevelopment of the power plant and surrounding area as a shopping, residential and commercial area.
“Battersea Power Station has long been an iconic feature of the capital’s skyline, and these plans will make sure that status is retained for years to come,” he said in a statement.
Mr Johnson’s approval was the second of three planning hurdles faced by the development. The first was the local council, Wandsworth, which gave its permission last month.
The plans still need the support of Britain’s secretary of state for communities and local government, Eric Pickles. REO director, Rob Tincknell, said yesterday the company looks forward to the plans passing to the secretary of state for final approval.
REO owes about €900 million to Nama. It is currently restructuring its finances and debts. As part of that, it intends to float off Battersea and bring in a partner to finance its development.
Last month it said that it has been in talks with a number of candidates. Both Nama and Lloyds have agreed to extend repayment terms on Battersea-related loans until next August.
Battersea was a coal-fired power plant built in two phases in the 1930s and 1950s. The property has passed through a number of owners since the 1980s.
The John Ronan- and Richard Barrett-owned Treasury Holdings is the biggest shareholder in REO.
