Tag Archives: REO

REO collapses into administration

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Real Estate Opportunities has been put into administration by a UK judge after its owners failed to repay debts of £501m owed to Lloyds Banking Group and Ireland’s National Management Asset Agency (NAMA).

Administrators Ernst & Young have taken control of the Grade II listed red-brick building and will now either sell the site or the debt to recover the amount owed. The creditors initially called in the loans on 29 November and REO was inviting offers for its controlling stake in the site soon after.

Lloyds told the Guardian: “From the outset we have been determined to secure a buyer who will kickstart the regeneration of Battersea Power Station and we have done everything possible to give the owners both the time and financial support to achieve this.”


“However, after several months of discussions and still no acceptable offers on the table, administration is the only means we have to ensure that a sales process is put back on track. Without a financially stable owner, the site’s future remains unclear and that’s a situation we want to avoid.”

Keith Garner of the Battersea Power Station Community Group, which opposed the Irish company’s plans, called for the power station to be returned to the public sector, with repairs to be funded by the Heritage Lottery Fund.

The group said on its blog: “For the Battersea Power Station Community Group it is just another ‘new beginning’ as the fourth developer limps off stage to boos and jeers.”

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REO is falling to pieces – literally

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“If there is a high wind one of the chimneys on the power station is  going to come down, so it’s better if you take them down and put them back up so that can’t happen. They’re basically un-reinforced concrete.”
Richard Barret, co-founder of Treasury Holdings, on the redevelopment of Battersea Power Station, October 2011

And just a few months later their fence around the power station was blown over by a strong gust of wind. All four chimneys are still standing strong proving once again that Real Estate Opportunities‘ threats, promises and bank accounts are nothing but empty.


This picture was sent to us by Brian Barnes, founder of the Battersea Power Station Comunity Group.

Industrial heritage “As important as our country homes and castles”

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A new survey from English Heritage has found that listed industrial buildings are at the highest risk of severe neglect. Around 3% of standard grade I and II* listed buildings in England are considered to be at risk, while a staggering 11% of industrial grade I and II* listed buildings are in the same category.

Grade I and II* industrial listed buildings in England cover a variety of structures from across the industrial spectrum including Battersea Power Station.

According the English Heritage the problem is not a lack of appreciation from the public. A poll of public attitudes carried out on their behalf shows that 86% of the public agree that it is important we value and appreciate industrial heritage and 80% think it is just as important as our castles and country houses.

Despite English Heritage’s obvious concerns about the future of listed industrial heritage sites, it seems that they have some problems categorising the status of some of these sites.

Their 2011 Heritage At Risk Register lists both Battersea Power Station and the Victorian Battersea Pumping Station as “Priority D”. This means “Slow decay; solution agreed but not yet implemented”. Which is ambiguously incorrect on both fronts.

Battersea Pumping station:

The report does correctly state that this historic Victorian Pumping station is going to demolished, despite widespread and authoritative opposition, after a planning application was approved by Wandsworth Council in November 2010. So what English Heritage really mean is, it’s going to be knocked down but it hasn’t been done yet. The pump station is crucial, the only reason to demolish it  is it allows the power station owners REO,  to maximise profits. Apparently completely ignoring Malcolm Tucker of the Greater London Industrial Archaeology Society  who previously made it clear “that it should be possible to incorporate the conserved building within the scheme.”

Battersea Power Station:

Again the report offers clarity by stating “fresh planning and listed building applications approved 2010 subject to legal agreement for restoration, extension and conversion of Power Station to provide retail, residential flats, business, cultural, hotel and conference facilities.”

There are two problems here: 1, “D” has been the status of the power station for decades now and little has changed. 2, the fact that legal agreement is required means that a solution has not been agreed.

Priority D is therefore the developers ideal status. Using the “big bang theory of redevelopment” implementation of the “solution” can be almost permanently postponed. Rather than phased conservation and restoration the heavily indebted REO insists their preposterous scheme to “save” the power station depends of a new tube line being dug, which of course will never happen.  They claim that their “solution” to restoration depends on the creation of a whole new urban area- a scheme that looked unlikely even in the height of the property boom.

Meanwhile the building falls into decay and eventually will require demolishing for safety reason giving the developer a clear conscience and nice clear piece of land to build on. Never mind that the nation loses one of its most iconic industrial buildings that are ‘as important as our castles and country homes”.

Of course the developers could “moth ball” both buildings until such time that a genuinely appropriate and viable solution comes along, but there is no need to speculate on why they won’t do that.

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Battersea Power Station chimneys will fall in high wind, claim REO

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Visit Battersea Power Station for some top notch entertainment… except on a windy day, when you’ll get a little more than you bargained for…

http://youtu.be/JWjaLR0v7Ss

Battersea Power Station’s impressive resume as an event venue has spanned across all walks of entertainment categories, from live music concerts to Hollywood movie sets. However,  Battersea’s owners, Real Estate Opportunities (REO),  have recently announced that the station’s four chimneys are dangerously close to toppling and need demolishing.

But if you think that this health and safety nightmare is going to prevent REO and Wandsworth Borough Council from inviting thousands of members of the public into the Grade II* listed building, think again. The next few months entertainment seems bigger than ever.

For instance, this October the Relentless Freeze Festival- the UK’s only snow, ski and music festival- returns to Battersea Power Station.
Here, athletes across skiing and snowboarding will compete on a 32 metres high jump constructed within the power station, complete with 500 tonnes of real snow. As competitors pound the slopes, 4 live stages will host a handful of loud music acts to an audience of up to 40,000.

The station has also been used for the Red Bull X-Fighter season, the world’s biggest Freestyle motocross championships. This November, X-Fighter is likely to attract 30,000 adrenaline junkies wishing to witness the high-octane showdown.

But it was only last Saturday that Richard Barrett, one of the co-founders of Treasury Holdings (which has a majority stake in REO), spoke to Reuters about their chimney conundrum:

“One day (if) there is a high wind there one of them is going to come down so it’s better off you take them down and put them back up so that can’t happen”

“All four of them will have to be taken down and rebuilt,” Barrett said in the interview on the sidelines of an economic forum in Dublin, “They are basically un-reinforced concrete.”

Since 2010, REO has spent nearly half a million pounds surveying and trial-repairing the four chimneys, with the rather predictable conclusion from their surveyors being that they are in “worryingly poor condition”.

Campaigners against REO’s proposals claim that plans to demolish and rebuild the chimneys- at a cost of £12m- may be the beginning of plans to eventually destroy the entire building.

A report opposing REO’s claim, collaborated in 2005 by the World Monument Fund, the Twentieth Century Society and the Battersea Power Station Company, states that there is no evidence to suggest the chimneys are structurally unsound, and that the “reinforced concrete structures” (that’s right Barrett, reinforced) are far from the end of their design life.

Brian Barnes, founder of the Battersea Power Station Community Group, said:
“There is no reason for the chimneys to be destroyed – their condition has been exaggerated.”

Actions often speak louder than words; Wandsworth Borough Council would not allow thousands of people to attend numerous sporting, music and fashion events if they thought REO’s claims were even vaguely true. Unless they plan to hand out hard hats at the beginning of every gig, of course.

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Real Estate Opportunities “debt D-day” approaches

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The financial credibility of the owners of the Battersea Power Station site, REO (Real Estate Opportunities) faces a strong test on the 31st of August when payments are due to both NAMA – the Irish toxic debt bank – and Lloyds Banking group. REO’s creditors have recently appointed Ernst & Young as insolvency advisers in advance of the 31st August deadline. Further details on the ‘debt D-day’ are available via the  The Telegraph and Co Star Group.

The Battersea site was bought in 2006 by REO, which is in majority owned by Irish group Treasury Holdings. This purchase occurred during the craziest period of the Irish property bubble. We can see remnants of the bubble in the current development proposal for the Power Station site. The plans bear all the hallmarks of the worst in speculative urban development that occurred during the bubble. However London has remained somewhat immune to the property bubble, and developers are happy to continue with business as usual and forget anything ever happened. This ‘developers dementia’ is of course good news for REO’s creditors NAMA who have been actively encouraged by some commentators to keep inflating a London property bubble.

Within all of this financial wheeling and dealing the real question is being ignored. That is not how long REO can sustain its current level of debt, but one of how long more the planning authorities in London will go on supporting the speculative urban development charade that inflates such bubbles.

The Battersea site is to be developed with a FAR (Floor Area Ratio) of roughly 5.0. This density is above average for London and well above an acceptable maximum density for a northern European city. Such densities sacrifice important basic human needs like daylight and turn open spaces and streets into canyon like wind tunnels. The only purpose such densities serve is to maximise short term profits for developers.

London’s planning authorities need to develop new thinking and approaches to the development of such iconic locations. Which have at their heart urban design that pays regard to human scale and the longer term societal, environmental and cultural needs of the city, rather than pandering to the demands of the demented developers.

 

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Battersea Power Station: an open letter to the Science Museum

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thinks..one day all this will be allowed to rot...

Keith Garner is a Battersea-based architect and member of the Battersea Power Station Community Group who has recently addressed an open letter to the new head of the Science Museum, Ian Blatchford, proposing a collaborative arrangement between private developers and public institutions to secure the future of the Battersea Power Station.

It has been suggested several times that parts of the Station, especially the famous ‘A’ Station Turbine Hall and Control Room, would work well as a museum of industry or science, and this proposal was raised again at a lecture on the future of Battersea Power Station delivered by architecture historian Gavin Stamp recently. After attending the lecture, Keith drafted a letter to Ian Blatchford proposing the idea of a collaborative effort between the Science Museum and developers.

Battersea Power Station’s owners, Treasury Holdings, are currently in financial difficulty because of the Irish banking crisis and it looks likely that they will soon be forced to sell to another private developer, and there’s little to suggest that a new private owner would fare any better at Battersea Power Station than their three predecessors.

A joint venture would not only guarantee public access to the BPS, but also give private developers a greater chance of success in their plans for the site.

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Battersea Power Station history from the 30s to 1983

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The Vauxhall Society reprints an extract from  ‘Battersea Power Station – 50 Years of Service – A Short History’ first published by CEGB Public Relations Branch in 1983.

The Vauxhall Society is the civic consultative group covering the London parliamentary constituency of Vauxhall, which extends from north of Waterloo to Brixton, Clapham, and Stockwell and Vauxhall, as well as the neighbouring districts of Southwark and Wandsworth.

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Battersea Power Station- a tragi-comedy of errors

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here today...

Battersea Power Station- a tragi-comedy of errors.

by our theatre critic BabyLonDon

Last night’s Wandsworth Borough Council Planning Committee meeting to approve the demolition of the Victorian Battersea Pumping Station and the demolition (and supposed replacement) of the iconic power station chimneys was the best show in town- Dickens in modern dress that occasionally lapsed into panto. The farce played to a packed house – with the corridors full of (vested?) interested parties straining to hear the proceedings over the PA.

The rather predictable plot- a variation on the turkeys voting for Christmas story -had a committee clearly determined to vote in favour spending three hours going through the massive planning application with just one dissenting voice of reason, played by a rather hammy councillor Tony Belton, pointing out the blindingly obvious flaws and unfeasibility of the scheme.

The real drama and humour lay in the fact that the committee seemed oblivious to the subplot- that the developers, REO (Treasury Holdings UK), are massively in “toxic” debt and in effect owned by the Irish tax payers via  NAMA and will do nothing but continue to demolish what little is left on the site and then “flip it”- selling it on as an empty brown field site for river front luxury development.

REO were unlucky that when the music of the property boom stopped they were left without a chair, but lucky enough to have their biggest non-Irish asset located in Wandsworth, infamous for having allowed the power station to fall into its current state of near dilapidation and for waving through truly hideous and desolate riverside developments.

There was something distasteful in the pathos of the affable officer’s naive presentation of the nonsensical scheme as from the public gallery hard nosed and cash hungry developers salivated at the easy meal they were shortly to enjoy.

There were comic moments as the “power dressed” committee members seemed to be made up of people who were in thrall to the promised dream of capitalism but had no clue about business. They dismissed the very real credibility gaps in the developers “vision”, enthusiastically hanging the whole wobbly edifice on the “promise” that these mega debtors (or at least Irish toxic debt vehicle NAMA) would stump up over 200 million pounds for the Northern Line Extension, or as it is known locally the “Ghost train to nowhere”. Even if this phantom train ride were real it would not happen for years even if it all went to plan… it was an evening of “even ifs”.

One comedic highlight was the officer’s report on the stringent “conditions” the council had negotiated with the Developers.

REO could take down the chimneys but must replace within 7 years.

REO could remove the embarrassing sight of the wharf cranes they are letting rot and could “restore” them inside the hulk of the rotting power station.

REO could first develop a slither of land on the north west river front. Happily the piece of land with most instant resale value, being the furthest from the smelly and polluting waste transfer facility on the north east water edge of the site and the cluster of huge gas holders on the south west edge, deemed by the HSE to be enough of a potential danger to society they recommended the scheme was rejected. This danger of an inferno seemed not to trouble the committee who dismissed the HSE’s concerns. One councillor mocked it as health and safety gone mad as residents of the later phases of the development nearer the potential blast would have chosen to buy their luxury flats aware of the risk.

They also swallowed, uncritically, the completely spurious argument for knocking down the grade II listed Victorian pumping station on the grounds it was a “community benefit” in order to “save” the power station apparently achieved by destroying its architectural value by knocking windows all along its sides and turning it into a shopping mall with luxury flats.

All of the responsibilities and commitments of REO were locked into phases of the development projected way into the future. As REO have no real intention, or means, to “deliver” these planning pipe dreams they were in effect getting off Scot free. The only thing the planning committee’s decisions would guarantee were the demolitions.

The press has been full of the glossy artists impressions of this bright new future but actually it is a dark day for most Battersea residents as this scheme will deliver nothing but another decade of planning blight. A bleak future without two of the regions most precious and best loved buildings.

The optimists had to accept that even if the Power Station were to survive this scheme it could not actually be seen from anywhere in the borough once surrounded by the 15+ storey buildings REO planned.

Given the power station is Wandsworth Borough council’s logo it was indeed a turkey landslide vote for every day being christmas.

BabyLonDon’s Final Verdict: Funny but sad. Not an “An absolute triumph”

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Artists’ Impressions Of Battersea Are For Illustration Purposes Only

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BPS Battersea Power Station

The demolition plans proposed at last night’s meeting for the future of the grounds of Battersea Power Station grounds are merely artistic impressions in soft focus and not what locals and Londoners should expect to receive.

Most of the things promised are so far in the future that their coming to fruition is highly unlikely – the only concrete actions that were clearly agreed to with immediate effect were the removal of the chimneys and the knocking down of the Pumping Station.

Don’t hold your breath for keys to a luxury flat here just yet.

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Battersea Power Station demolition by stealth gets council go ahead

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Tonight, with only one vote against, the London Borough of Wandsworth’s Planning Committee gave the green light for the demolition by stealth of Battersea Power Station by approving the chimneys are removed and (maybe?) replaced and the total destruction of the Victorian Pumping Station as predicted. Condemning north Battersea to another 15 years of urban blight.  But take heart there are still many rivers to cross (for the developers) and many opportunities along the way for us to propose more imaginative uses and to prove that urban planning by speculation is not viable or in the public interest.

For a full report read the review by Spectacle’s theatre critic BabyLonDon

“An absolute triumph”

Coming soon… details of our photographic competition: Soon to be Lost Views of Battersea Power Station

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