Real Estate Opportunities (REO) has secured a further £40m of debt to finance the development of Battersea Power Station in South London.
Bank of Scotland Corporate has increased an existing £185m debt facility by £40m and extended the loan from December next year to March 2011. The debt will be used to finance the costs of the Battersea Power Station planning application which is due to be lodged in 2009.
REO, which is listed on the London and Irish stock exchanges, has also increased an existing loan facility with an unnamed Irish lender, secured against REO’s income-producing investment portfolio in Ireland, by €50m (£39.5m). The maturity date of this loan remains 2013.
REO chairman Ray Horney, said: ‘REO’s ability to secure additional funding and to extend the term of debt facilities, despite this unusually turbulent period in credit markets, highlights the strong financial position of the company. Its robust income producing portfolio and long term development portfolio pipeline underpins this position and should give further confidence in its ability to secure continued growth in the medium term.’
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