* Lenders allow more time for new equity partner to be found
* Talks with four or five parties continue
* Announcement expected in next weeks
By Tom Bill
LONDON, Sept 1 Lenders to the owner of Battersea
Power Station in London waived a debt maturity deadline
yesterday while talks with potential new equity partners for its
redevelopment continued, a source close to the process told
AIM-listed Real Estate Opportunities is seeking a
partner for the 5.5 billion pound ($9 billion) development, and
its senior lenders Lloyds and Ireland's National Asset
Management Agency have already extended a deadline once relating
to the 400 million pounds REO paid for the site in 2006.
"The banks have nothing to gain by calling the debt in.
Talks with new equity partners continue, and an announcement may
come in the next few weeks," the source said.
The 10.1 million square-foot redevelopment involves an
extension to the Northern Line underground railway, and the
construction of thousands of homes, retail and office space.
REO has spoken to sovereign wealth funds, private equity
firms, wealthy families and property companies about taking a
stake. There is a shortlist of four or five parties, the source
Battersea's imposing white brick chimneys have been a
feature of London's skyline for almost 80 years, but schemes to
redvelop the site have repeatedly run aground since power
production ceased nearly three decades ago.
The project is one of the largest regeneration proposals
being considered in the capital, and is expected to provide up
to 25,000 jobs, with about 15,000 people working within the
($1 = 0.614 British Pounds)
(Editing by Will Waterman)