Creditors call in debt at Battersea power station

Lloyds Bank and Ireland's asset agency NAMA are on the verge of taking control of the landmark Battersea power station (BPS) development site on the River Thames in London.

London-listed Real Estate Opportunities (REO) confirmed on Thursday that the creditors want to appoint administrators to BPS subsidiaries that hold some £500 mln (EUR 585 mln) and are unable to meet repayment demands.

An English court is to hear the creditors' application on 12 December.

REO, which is backed by Irish property group Treasury Holdings, acquired the power station in 2006 and currently holds a 54% stake in the asset. The development master plan includes 3,400 new homes, 161,000 m² of office floorspace, 64,000 m² of retail, restaurants, a hotel, leisure space and community facilities.

Earlier this year REO appointed Cushman & Wakefield to lead the search for new investors in the project. In its latest statement, REO said: 'The company remains in discussions which may result in the disposal of the group's interest in the Battersea power station site and repayment of associated liabilities. However, there is no certainty that any such transaction will be effected'.

REO added that its other assets, which are situated in Ireland, are unaffected by the above developments.