Real Estate Opportunities revealed a 38% rise in net asset value in its half-year results this morning.
The company, controlled by Ireland-based Treasury Holdings, also announced that it was to buy the remaining stake in Havenview Investments that provoked controversy in 2004, a joint venture with Treasury and seven other properties, for £120m.
REO said it had received indication that 64.5% of the company’s shareholders, not including itself, had indicated approval for the purchase of Havenview through the issue of new shares at 150p. This would see REO buy Treasury’s 50% holding and take control of the vehicle.
Havenview hit the headlines when Dawnay Day, as a shareholder in REO, complained about a €40m (£26.7m) loan that REO gave to Havenview in 2004. The complaint came as Dawnay Day tried to rest control of REO away from Treasury, which at that point owned a 35% stake.
An extraordinary meeting will be convened in October to approve the purchase.
The company’s most significant UK holding is Battersea Power Station, which it bought from Parkview for £400m in December 2006. Horney said that remedial work had started on the site in July, and that the company was working with architect Rafael Vinoly on a new masterplan for the site, which is likely to be published in 2008.