Treasury-backed REO's assets up 50% to €2.4bn

THE VALUE of properties owned by the Treasury Holdings-backed quoted vehicle, Real Estate Opportunities (REO), was close to £1.9 billion (€2.4 billion) at the end of last year.

The company reported yesterday that its net asset value grew 45 per cent in 2007 to 151.9 pence from 104.5 pence at the end of the previous year.

According to its balance sheet, fixed assets grew to £1.85 billion at the end of last year from £1.2 billion at the close of 2006.

The net asset value of the company's zero dividend preference shares grew 9 per cent to 175.5 pence from 161 pence in 2006.

REO is a Dublin- and London-listed property investment company. In December 2006 it bought the Battersea power station site in London for €600 million.

Treasury Holdings, controlled by high-profile developers John Ronan and Richard Barrett, owns almost 59 per cent of REO.

The company, Mr Barrett and Mr Ronan are also significant shareholders in another quoted property vehicle, China Real Estate Opportunities (CREO).

Last year it hired architect Rafael Vinoly to draw up a master plan for Battersea. Yesterday, REO chairman Ray Horney said the Greater London Authority has begun work on an area planning framework for the district.

Mr Horney's statement said the main events in REO's Irish property portfolio last year were the for £120 million purchase of Treasury Holdings' interests in Havenview Investments, and the signing of the Bremore Port joint venture with Drogheda Port Company.

During the year, it agreed a £110 million debt facility with Bank of Scotland to buy properties close to Battersea. The chairman's statement said that REO has hedged "the large majority" of its interest rate risk.

Mr Horney said that the company is confident in its long-term outlook. "Given the uncertain outlook for the US and other western economies and the significant rerating of property company shares, it would be unrealistic to hope or expect that REO should have remained immune," he said.