TREASURY HOLDINGS will control more than 40 per cent of the new firm that will take over ownership of London’s Battersea Power Station in the proposed restructuring of listed property investor Real Estate Opportunities (REO).

REO, backed by Treasury and its owners, John Ronan and Richard Barrett, said yesterday it would ask holders of its ordinary and preference shares and convertible loan stock to approve the proposals at an extraordinary general meeting in May.

Part of the plan involves floating off the power station, which REO bought in 2006 for €600 million, into a new holding company, BPSSV, through which new backers can invest in the property’s redevelopment.

Treasury Holdings is REO’s biggest shareholder and owns preference shares and loan stock in the company. It will own 41.2 per cent of BPSSV if the restructuring is approved and goes ahead. Holders of REO’s zero-dividend preference shares and convertible unsecured loan stock will get BPSSV shares as part of the restructuring.

REO owes the holders of its convertible stock £110.4 million (€125 million). They will receive 33.4 per cent of BPSSV, in shares and warrants, and 16 per cent of REO in settlement of this. Holders of its preference shares will get 19.1 per cent of BPSSV, in shares and warrants, and 9 per cent of REO in satisfaction of a £136 million debt.

Treasury owns convertible loan stock and zero-dividend preference shares in REO. About 60 per cent of the holders of both securities have agreed to back the plan.

The National Asset Management Agency has agreed to hold off on calling in a €95 million guarantee given by REO in relation to some of its Irish properties for one year after the restructuring is completed. REO owes the agency about €900 million.

Battersea is to be redeveloped as a mixed residential and commercial district.