Real Estate Opportunities Share Discussion Threads

[the big fella] 09/2/2011 16:29

Is anybody there. A significant announcement which has gone pretty much unnoticed. These will be the springer tomorrow.

[nofool] 09/2/2011 16:11

YES!!

Wake up

[tiltonboy] 09/2/2011 15:57

No RNS yet, but Bloomberg are reporting that the final planning approval has been received.

[lbo] 07/2/2011 20:05

Commercial property owners and developers are in breach of covenants on four out of every five loans, with £194bn at risk, according to an unpublished report for the Bank of England. Lenders with £243bn outstanding to commercial property companies are still heavily exposed to bad loans and could take heavy losses in the coming years. The Bank of England Commercial Property Forum said that three years on from the start of the credit crunch many of the key property loan risks identified in 2009 were still relevant, the Times reports.

[flyingswan] 05/2/2011 10:02

As Bloomberg notes today, "from Manhattan office towers to apartments in Florida to retail properties in Washington, commercial real estate values are rising, defying predictions of a collapse."

[nofool] 01/2/2011 09:34

This spring David, or the next one..?

[flyingswan] 31/1/2011 09:39

Property prices will start to recover in the Spring. IMHO

[tiltonboy] 24/1/2011 11:30

LBO,

Any comments on my post from Friday?

[lbo] 24/1/2011 10:52

A building firm that was rescued from examinership three years ago has been put into receivership by the National Asset Management Agency (Nama) and Ulster Bank.

McEnaney Construction, which is controlled by developer John McCann, has debts of almost €75 million.

[flyingswan] 24/1/2011 10:18

Barchart is looking more positive on REO:

[rhubarbe] 23/1/2011 22:47

Not sure, Shav, I made the thread for Leeds. I don't hold - I'm oan old oiler.... I'm sure leeds will answer that for you, though. :)

[shavian] 23/1/2011 22:41

Hi Rhu. Just picked up on this one. Interesting on several fronts, including the ROR and geothermal. Seems everyone's piling in to MVC on the back of REO, but would I be thinking that this is the smarter place to be? MVC seem like a bunch of Irish chancers who have stumbled onto a good thing...

[tiltonboy] 21/1/2011 12:50

LBO,

If the equitisation of CULS and ZDP holdings into Battersea takes place then the picture won't be quite so bad, but still not brilliant.

The best part of £400m of debt (including the Oriental Loan Notes) currently in REO will be wiped out. There is also £400m of debt on Battersea, but I'm not certain where that is currently held.

I wouldn't buy REO Ords under any circumstance, and given the CULS have doubled since I bought them, I probably won't buy any more of those at the moment.

[bsg] 21/1/2011 12:10

All we can hope for medium term is they get good income from their portfolio, and long term property prices increase.

[lbo] 21/1/2011 11:59

They need a 100% rise in their property portfolio which is still falling in value!

"The portfolio was last valued in August 2010, by Treasury Holdings, in their capacity as investment advisers, at a value of €1,050 million"

June 2010


REO owes €2 billion in total to its banks, while its properties in Ireland and Britain are valued at €1.3 billion

[flyingswan] 20/1/2011 09:42

Global Commercial Property Investment May Rise 25% in 2011:


It's time to buy back into commercial property -- selectively.
News that one of Britain's biggest commercial property companies is seeing an upturn is reason for confidence in the sector...

[flyingswan] 19/1/2011 09:47

REO Looks ready for recovery IMHO:

[flyingswan] 19/1/2011 09:03

RNS Number : 4599Z
Real Estate Opportunities PLC
14 January 2011

REAL ESTATE OPPORTUNITIES PLC

INTERIM MANAGEMENT STATEMENT

Real Estate Opportunities plc ("REO" or "the Group"), the real estate investment and development group active in the UK and Ireland today issues its Interim Management Statement covering the period from 30 October to the date of this announcement.

Highlights:

· Battersea Power Station Planning Application approved by Mayor of London and Wandsworth Council

· Significant interest from prospective investors in Battersea Power Station during the global investment roadshow

· Terms of Balance Sheet Restructuring announced on 24 December 2010

· Memorandum of Understanding signed with NAMA on Group business plan

· Continued strong operational performance with occupancy levels at 95% and rent weighted average lease length of 12 years

Ray Horney, Chairman of REO, said: "We are pleased with the progress we have made in recent months. The planning application for BPS is progressing well, while we are also making good progress towards balance sheet restructuring. We look forward to updating the market on further progress in due course."

Battersea Power Station: As previously announced, Wandsworth Council and the Mayor of London have both now approved the Group's planning application for the Battersea Power Station site. The application is currently being considered by the Secretary of State for Communities and Local Government, with a decision anticipated in the near future.

The approvals above represent a major step towards realising the Group's vision for the scheme, which has garnered significant support from various stakeholders including the Greater London Authority, English Heritage, the Commission for Architecture and the Built Environment (CABE) and most importantly, the local community.

It has always been the Group's development strategy to partner with a new investor, and we have already attracted significant interest from a range of prospective investors.

Construction on Phase 1 of the development is scheduled to commence in early 2012 with completion in 2016. The remaining phases, including the first ever privately funded extension to the tube network in Central London, are scheduled for completion thereafter.

Balance Sheet Restructuring: As announced on 24 December 2010, the Group's negotiations with its creditors regarding the terms of a financial restructuring are progressing well. Subject to approval from the various creditor groups, the detailed terms of the restructuring deal are as follows:

· Battersea Power Station would be transferred by REO to a new holding company. The demerger of Battersea Power Station is intended to facilitate the successful conclusion of the Group's global third party investment road show through which it is seeking to attract a long term equity partner into the demerged vehicle.

· The Group would effect debt for equity swaps with the holders of the 7.5% convertible unsecured loan stock ("CULS") and zero dividend preference shares ("ZDPs"). CULS holders would receive 21.2% of the equity in the new Battersea Power Station holding company and 15.9% of the enlarged equity of REO. ZDP holders would receive 12.1% of the equity in the new holding company and 9.1% of the enlarged equity of REO. In addition, CULS and ZDP holders would be issued with warrants representing 15.9% and 9.1% respectively of the initial issued share capital of the new holding company. Each warrant would entitle the holder to subscribe for one new ordinary share at an exercise price of 0.001p at any time for up to 15 years after the completion of the restructuring if the equity in the new holding company has a value in excess of £510 million.

· Ordinary shareholders (including Treasury Holdings) would receive 5% of the equity in the new holding company and warrants in respect of a further 5% and would, after the issue of ordinary shares to CULS and ZDP holders, retain 75% of the enlarged equity of REO.

· As an incentive to manage the development of Battersea Power Station, Treasury Holdings would be awarded a management fee representing 7.7% of the equity in the new holding company.

· The remaining equity in the new holding company, amounting to approximately 54%, would be retained by REO and its subsidiaries following the equitisation of various intercompany balances owed by companies in the Battersea Power Station group.

· REO would be released from various financial obligations relating to the Battersea Power Station group, including guarantees of senior facilities and the £150 million loan note issued to Oriental Property Limited.

· If the £150 million loan note and accrued interest is not repaid on 31 May 2011, Oriental Property Limited would, subject to certain exceptions, have the option to convert the debt into 75% of the equity in the new Battersea Power Station holding company. Shareholders in the new holding company would have the right to acquire that interest prior to 1 June 2012 for an amount equal to the sum due to Oriental Property Limited under the loan note together with interest.

NAMA: As previously indicated, the Group submitted a comprehensive business plan in May 2010 for NAMA's review. The initial evaluation process is now complete resulting in a signed Memorandum of Understanding, the terms of which are non-binding and intended to form the basis for further negotiations. NAMA will monitor the Group's subsequent performance to ensure that it adheres to targets contained in the Memorandum of Understanding and, subject to the further negotiations referred to above, binding facility agreements will be entered into.

Property Portfolio: The portfolio was last valued in August 2010, by Treasury Holdings, in their capacity as investment advisers, at a value of €1,050 million.

The Group continues to place a strong emphasis on proactive management of the portfolio and tenant monitoring, resulting in stable annualised income of €40.2million, during a period of rental value deflation. Continuing strong operational performance is underpinned by prime office and retail locations, together with the diversity represented by high quality tenants including Vodafone, Merrill Lynch, KPMG and Marks & Spencer, which account for over 63% of the portfolio based on rental income.

Despite current market conditions, portfolio occupancy remains at 95%, with only 4% of rent roll in arrears, and a rent weighted average lease length of 12 years.

The Group's only current development project (Montevetro, Dublin 4) is due for practical completion at the end of January 2011, with strong interest from the market in the building, while a prudent approach to the timing of its remaining development pipeline continues to be adopted.

Outlook:

The Board is encouraged by the significant progress made in recent months in respect of the planning permission granted for the Battersea Power Station project and the signing of the Memorandum of Understanding with NAMA on the Group's business plan, while negotiations towards a successful restructuring of the Group's balance sheet have reached an advanced stage.

While the Group's performance continues to be adversely impacted by continuing concerns about the underlying Irish economic performance, the recent agreement between the Irish Government and the IMF/EU should assist in stabilising the banking sector, thus enhancing capital adequacy and liquidity of the banks. There are also continuing signs that the commercial property market is stabilising1.

Based on the above, in conjunction with the Group's quality portfolio and strength of senior management, the Board remains confident that the Group is positioned to benefit from predicted stability and growth in the wider Irish and UK economies.

[lbo] 17/1/2011 12:29

A London office block bought by Irish investors for stg£C80 million in 2006 has been put into receivership by the National Asset Management Agency (Nama).

[rhubarbe] 14/1/2011 14:11

No prob, Leeds.

[lbo] 14/1/2011 09:45

He posted no link! but maybe you were too "slow" to pick that up? ;)



THE National Asset Management Agency (NAMA) hopes to raise close to €200m from "two or three" Irish property sales by the end of March, chief executive Brendan McDonagh said yesterday

[tiltonboy] 13/1/2011 15:09

LBO,

Bit slow there mate; Caveat_Emptor posted that article on here on Sunday.

[lbo] 13/1/2011 14:45

NAMA orders Treasury to sell major block of assets