Real Estate Opportunities Share Discussion Threads

[caveat_emptor] 15/12/2011 09:04

That's not funny.....a lot of people have lost a
lot of money here, and more before any of the Battersea
debacle, not to mention the two boys themselves.

I do not like to see anyone guffaaaawing the losses
of others!!!

It's one thing to specualte on a company, but you
should leave personalities out of it!!!

[cecky] 14/12/2011 15:28

cecky - 24 Jun'11 - 19:18 - 1000 of 1070


gdasinv2 - 10 Jan'11 - 16:07 - 819 of 999


............" I belive by mid year it should be arround 30p."

........................................................................

lol
lol
lol
lol
lol

[lbo] 13/12/2011 10:45

a report on the debts held by Treasury Holdings



"Although we think it unlikely that the loan will default during its term, we consider there to be a real risk that it will default at maturity in 2013,'' it stated.

The properties underpinning the loan were once worth €500m, but have dropped to about €291m at the end of February.

The agency claimed the price fall means it will be hard to sell the properties to clear the loan or to re-finance the loans themselves

[lbo] 13/12/2011 10:38

Unlike many of its rivals Treasury has a slew of top-class assets, which -- apart from the afore-mentioned National Convention Centre and the Battersea site -- include the Treasury Building, one of whose tenants is NAMA, and several properties in Shanghai and Beijing.

Unfortunately, unlike Mr Barrett, who seems to have given his bankers few if any personal guarantees, Johnny seems to have been less cautious in this regard. If Johnny does comes to grief it will ultimately be these guarantees rather than his previously colourful lifestyle which will prove to have been his undoing.

[lbo] 13/12/2011 10:31

In addition, it is understood a deal between REO and NAMA covering other debts is not close to agreement and further talks will be needed before NAMA signs off on any final debt plan

[caveat_emptor] 13/12/2011 08:04

Tiltonboy....fascinating don't you think?
Makes lead article stuff in today's business world.
Just for the record.....is it 54% only of the final
loss at Battersea that will translate back into REO?

I still can't get my head around the INDO report which
says that REO Ireland is unaffected by the Administration decision?

Fascinating.

[caveat_emptor] 12/12/2011 17:36

"REO Ireland is not affected by Battersea going into administration..."

I don't understand that.....?

[caveat_emptor] 12/12/2011 17:36

Yeah......

[greedfear] 12/12/2011 17:08

Guess the question from this topic is answered then.

[caveat_emptor] 12/12/2011 15:33

Battersea into admin...sign up saying...

No predators please!

Remaining Irish-NAMA assets unaffected.

[caveat_emptor] 06/12/2011 19:42

The government has shelved plans to introduce a retrospective upward only rent review ban, stressing that it has not proved possible to develop 'a targeted scheme to tackle this issue that would not be vulnerable to legal challenge'.

[tiltonboy] 05/12/2011 13:08

In Portugal for the last week with "read only" access.

I think all points have been covered.

I´m not surprised by these developments, but disappointed nevertheless. Questions need asking of how the valuation of Battersea has been maintained given the current economic situation.

Given the Administrators are now hovering, I think chances of a deal are less than slim.

As for REO, the shares have had negligible value for a long time, even when Battersea was expecting to fetch 500m.

Oh well, it was a high risk punt that looks doomed to failure.

[lbo] 05/12/2011 10:09

Sounds like the administration of Battersea is going to leave an even bigger hole in REOs current negative Net aset value of £1.80p and will put it back at over £2.15p negativie NAV if Battersea sold at par of its debt.



"If they're going to hang their hat on getting par for it, I think they'll be very disappointed," said Mike Bessell, an analyst at Evolution Securities in London.

[caveat_emptor] 03/12/2011 03:01

"Battersea Power Station: Planners should accept that London will be better off without it....."

FT Lex Column

[sleepy] 02/12/2011 23:08

Interesting piece by Lex on Battersea on the FT website tonight

[lbo] 02/12/2011 15:56

Thats what REO is saying itself and thats with Battersea valued at £500m in the books in June and we now know they only have a 262 million offer from Malaysian investor share price Setia for Battersea.



Diluted deficit per share is at least, even after the recent restructuring since June, a still negative £1.80 per share. And thats not factoring in the further falls in Irish commercial property prices or as per above the reduced sale price of Battersea that is now being talked of.

I also note KPMG have put an emphasis of matter in the REO acccounts. They did that with Irish life and permanent too and that did not bode well for its shareholders

[caveat_emptor] 01/12/2011 17:16

So are you saying that even if all the properties in Reo other
than Battersea were sold, the company will still have a whacking great
deficit?

[lbo] 01/12/2011 11:46

REO is heavily indebted with borrowings of GBP 1.7bn of which GBP 1bn is bank debt, a large amount of which is now with NAMA. The company has negative shareholder funds of GBP 0.8bn

[lbo] 01/12/2011 11:14

The remaining Irish portfolio has no equity value! DYOR

I suspect REO will eventually be put into receivership after the Battersea administration.



NAMA looks set to be the main loser when some loans given to Real Estate Opportunities (REO) to fund a group of 16 Irish properties fail to be fully repaid, the ratings agency Fitch claimed last night.

[caveat_emptor] 01/12/2011 10:33

Then what does this mean from the above?

"While administration now looks increasingly likely, the London landmark has been placed in a special purpose vehicle which means that administration has no implications for other assets connected to either REO or Treasury."

[zastas] 01/12/2011 09:57

It means curtains, unless this will help to flush out any of these apparent buyers-in-the-wings and show us their money. If I was Abramovich, I might already have made the banks and NAMA a bid for the debt.

[caveat_emptor] 01/12/2011 07:00

Tiltonboy.....

You may have noted this above...
"While administration now looks increasingly likely, the London landmark has been placed in a special purpose vehicle which means that administration has no implications for other assets connected to either REO or Treasury."

Can you advise as to what exactly that means and it's implications for
the REO after Battersea?

The remaining REO is a "good" company, with very valuable portfolio,
and producing dependable rent rolls.....?

Does it have to absorb a deficit from Battersea, and can it?

[caveat_emptor] 01/12/2011 06:57

REO likely to lose control of iconic Battersea power station


By Emmet Oliver, Deputy Business Editor

Thursday December 01 2011

Developers Johnny Ronan and Richard Barrett look set to finally lose control of their most cherished UK asset, the Battersea Power Station, as NAMA and Lloyds Bank move to appoint receivers to the project.

NAMA and Lloyds have applied for a court hearing on December 12 looking for a receiver (known in the UK as an administrator) to be appointed to the project, which gives their company Real Estate Opportunities (REO) only days to do a deal by bringing in an outside investor.

Battersea is owned by REO and a group of investors and the Battersea company owes £324m (€379m) to NAMA and Lloyds.

REO itself is majority-owned by Treasury Holdings, founded by Barrett and Ronan.

While administration now looks increasingly likely, the London landmark has been placed in a special purpose vehicle which means that administration has no implications for other assets connected to either REO or Treasury.

REO bought the site in 2006 for a reported €595m and while planning permission and political support has come for the project, it has yet to be developed and lacks a connection to the London Underground.

A Malaysian fund and Chelsea Football Club owner Roman Abramovich are both understood to have made offers to invest in the site, but no deal so far has been completed.

The move to appoint administrators puts fresh pressure on the REO team.

The two banks this week demanded repayment of the loans from the Battersea company and a statement from REO said yesterday the Battersea company was "not in a position to satisfy these demands for repayment".

The purchase of the site in 2006 was the first significant acquisition in the UK for a number of years by REO.

Set alongside the River Thames in the London Borough of Wandsworth, the site is under a mile-and-a-half from Knightsbridge and under two miles from Oxford Street and London's West End.

Just this week UK Chancellor George Osborne agreed that London's Northern tube line could run to the site, once the developers were prepared to put up some of their own money.

"There is no certainty that any such transaction will be effected," said a statement yesterday from REO about what might happen next. I

Meanwhile, NAMA yesterday released a list of properties it has foreclosed on in Ireland and Northern Ireland. The Osprey Hotel in Naas, Co Kildare, is among them.

- Emmet Oliver, Deputy Business Editor