LISTED PROPERTY developer Real Estate Opportunities (REO) said yesterday that bank finance in the Republic will continue to be limited until the State’s rescue agency, Nama, begins its work.
REO, whose biggest shareholder is the Richard Barrett and Johnny Ronan-controlled Treasury Holdings, said the British property market is beginning to stabilise while it hopes that Nama will have the same impact in Ireland. In a statement, it pointed out that both houses of the Oireachtas have passed the legislation, which the President is now reviewing.
“Until Nama becomes operational and loans have been transferred, bank finance continues to be limited,” REO said.
It added that it is working with non-Irish banks, which the Nama rescue plan will not cover, to renew debt facilities where necessary.
REO is spending €800 million on redeveloping the Ballymun Shopping Centre in Dublin. It has a range of commercial properties, whose tenants include Vodafone, Marks Spencer, Merrill Lynch and KPMG.
Clients such as these account for two-thirds of its €47 million a year rent roll in the Republic. Its occupancy rates are over 90 per cent.
The company owns the landmark Battersea Power Station in London, where it is planning a £5.5 billion mixed-used redevelopment, which will include 3,700 new homes. REO has registered its planning application with the local council. The company said a recent draft planning strategy for London recognises the area’s potential for development.
