The Treasury Holdings-backed property vehicle, Real Estate Opportunities (REO) saw the value of its property portfolio value rise by 8 per cent last year from £1.7 billion (€1.8bn) to £1.9 billion (€2 bn).
The Treasury Holdings-backed property vehicle, Real Estate Opportunities (REO) saw the value of its property portfolio value rise by 8 per cent last year from £1,77 million to £1,910 million.
The increase in value was attributed to the strength of the euro which offset a revaluation decrease after capitalised costs of 16 per cent across the portfolio.
Property income amounted to £32 million compared to £20 milion a year earlier. The company attributed the rise to the strength of the euro, the inclusion of 12 months rental income from Havenview Investments, the additional eight property companies purchased from Treasury Holdings in 2007 and the completion of a number of upward rent reviews in the period.
REO is a Dublin-and London-listed property investment company. In December 2006 it bought the Battersea power station site in London for €600 million.
Treasury Holdings, controlled by high-profile developers John Ronan and Richard Barrett, owns almost 59 per cent of REO.
REO's UK portfolio, which includes Battersea Power Station, saw a revaluation decline after capitalised costs of 20 per cent while the Ireland investment and development portfolio values declined by 15 per cent. This resulted in a Diluted EPRA Net Asset Value (NAV) per share of 104.1p, a reduction of 28 per cent year-on-year from 143.9p a year earlier.
After valuation losses and operating expenses, reported operating loss was £265 million. Net financial expenses increased to £121 million in the period.
REO chairman Ray Horney said that while the company retained a cautious outlook the company was positioned to weather the current market turmoil and move forward once conditions improve.
