Friday18 August 2017

Battersea developer defers interest on loan repayments

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The firm bankrolling Rafael Viñoly’s planned £5.5 billion redevelopment of Battersea power station in south London has said it has reached agreements with its banks to defer interest repayments on its loans to next May.

The news now gives Real Estate Opportunities extra breathing space to come up with the repayments.

REO, which is controlled by developer Treasury Holdings, has borrowed £262.5 million from the Bank of Scotland and the Bank of Ireland, with the loan facility extended to August 2011 following an agreement hatched between the parties last month.

An outline planning application for the scheme is due to be heard by Wandsworth councillors later this month.



Readers' comments (5)

  • Simon Kaufman

    This project is the Sagrada Famila of London. Will it be complete in my lifetime? I hope so... and good luck to all those trying to piece it together.

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  • zecks_marquise

    Sagrada Famila of London haha are you kidding me? i never say a proposal to convert the powerstation into a cathedral. this development will be endless blocks of glass resi and business use. we will be lucky if it ends up like frankfurt.

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  • I'm intrigued by the amounts.
    Was this the money paid for the site?
    Is the build cost going to be more borrowing on top of this?
    Will they try to build the permission and sell and units into this deepening recession we're in?

    Is this, or part of it, to be timed to reach the market just before the 2012 Olympics?
    If so will the prices raised then suddenly plummet as the realisation hits people about the underlying value fo what the're buying in terms of location?
    Its Battersea - a fine area and an iconic building and site - not the West End.

    Or will the boys shelve the permission, if achieved, for an indefinite period and hope the market comes back?

    You see we're seen all this waffle and snake oil in Ireland and look where we are.

    I'm not running it down - the two boys are adventurous Irish entrepreneurs, but any deal has to stack up going forward and some questions need to be asked.

    If more people had asked more hard questions in Ireland in 2001, we wouldn't be in the mess we're in now.

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  • So that's two duff banks bailed out by the general public, investing in a duff project in a duff location, using a duff (or at least severely compromised) design. As for "Sagrada Famila" : where's the spiritual dimension in such an opportunistic mess? Sad and very familiar unfortunately!!

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  • Mike Duriez

    Zweks is right. Vinoly has stuffed as many frankfurters as he can in the space around the power station. He has left Giles Gilbert Scott floating in a sea of sausages.

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