THE TREASURY Holdings-backed property investment vehicle, Real Estate Opportunities (REO), has secured an additional €50 million in funding for its planned conversion of a London landmark.
The company said yesterday it had secured a £40 million (€50 million) increase in its existing £185 million debt facility for Battersea power station, the historic property it bought in 2006 for €600 million.
REO has also extended the loan term from December 2009 to March 2011.
The company said yesterday that it intended to use the extra cash to finance the costs of its Battersea Power Station planning application, which it will lodge next March.
REO launched plans to convert the power station and the surrounding site to a mixed-use commercial, residential and retail centre.
The group has a number of bankers. Bank of Scotland in Britain is believed to be involved in funding the Battersea project.
Last year the group secured £110 million from the same bank to fund the purchase of properties surrounding the Battersea site.
REO has also secured an increase of £50 million on a credit facility secured against rental income from its Irish properties. This debt matures in 2013.
REO Chairman Ray Horney said yesterday that its ability to raise cash in the current environment highlighted the company's strength.
"Its robust income-producing portfolio and long-term development portfolio pipeline underpins this position and should give further confidence in its ability to secure continued growth in the medium term," Mr Horney added.
REO is a Dublin- and London-listed property investment company.
Treasury Holdings, which is controlled by high-profile developers John Ronan and Richard Barrett, owns almost 59 per cent of the group.
