THE TREASURY Holdings-backed property vehicle, Real Estate Opportunities (REO) yesterday reported that its financial position remains solid, but acknowledged that conditions in Ireland and Britain are weak.
In an interim management statement covering the first three months of the year, REO said "the group's financial position remains solid and there have been no material events or transactions which affected the group over the relevant period".
Its property portfolio was last revalued on December 31st, when it reported a rise of 54 per cent in the value of its assets to €2.4 billion. Its next independent valuation will be on June 30th.
During the first three months of the year, REO sold its 21.4 per cent stake in Dublin's Northside Shopping Centre to Brian O'Farrell for €29.7 million. It said this was a 60 per cent profit on what it paid for the stake last year.
It said that poor availability of bank loans and low investor confidence had weakened activity in the Irish property investment market. The latest figures show overall capital values fell by 3.3 per cent.
The company has begun building an office block in Central Park, Dublin 18, a similar development in Barrow Street in the city centre and a retail and residential tower near Grand Canal Dock.
It is revising planning permission applications for housing at Kinsealy, Co Dublin, and Enniskerry, Co Wicklow.
In Britain, it said most areas of the economy have weakened, and uncertainty in the financial sector is set to get worse. It will be applying for planning permission to redevelop Battersea Power Station, which it bought for €600 million late in 2006, early next year. The Richard Barrett and Johnny Ronan-controlled Treasury Holdings has a majority stake in REO.
