IRISH PROPERTY developer Ballymore has cleared an important obstacle to realising a €500 million redevelopment in Berlin yesterday that involves the controversial demolition of two historic theatres.
A referendum yesterday to save two theatres on Berlin’s Kurfürstendamm failed to meet the necessary quorum of 15 per cent of voters. Just 13.68 per cent of eligible voters in the borough of Charlottenburg-Wilmersdorf cast their vote, of which 90 per cent were in favour of retaining the 1920s theatres.
The Irish property group spent more than €200 million on the failing “Kudamm Karree”, shopping centre in 2007 but its redevelopment plans have been mired in controversy because of the theatre demolition.
After yesterday’s vote Ballymore said it was confident of gaining approval for its redevelopment plan by British architect David Chipperfield, which will see a new €35 million theatre on the roof of the complex.
“After three years of opposition, Ballymore is now free to develop this site,” said Mr Paul Keogh, Ballymore group director. “This is a great result for both Ballymore and the Kudamm. We will now move on with our planning process and we expect to be starting development in early 2012.” The redevelopment is expected to take five years.
Meanwhile, it has emerged that the group is to transfer 72.5 per cent of its redevelopment of the old London Arena on the city’s Baltimore Wharf to Royal Bank of Scotland and a group of bondholders in a debt-for-equity swap.
Ballymore owes the bank and bondholders £265 million (€314 million), which is secured against the mixed-use scheme in London’s docklands, which is worth a total of £296 million.
Company documents filed by one of the Irish group’s British businesses, Ballymore (London Arena) Ltd, state that it is close to agreeing a deal on the debt with the bank and bondholders, that will involve the transfer of equity in the development to the lenders.
“If successfully concluded, the bank lenders will take an equity stake in the company in return for continued support, with the bondholders’ debt and accrued interest being converted into equity,” the documents state.
It adds that it is expected the company will become a 27.5 per cent associate of the group when it files accounts for 2011.
Ballymore has about £1.1 billion of debts due for repayment before April, and has already refinanced £172 million of this.
