Treasury Holdings, the property development firm owned by Richard Barrett and Johnny Ronan, was paid just under £19m (€23m) in fees by Real Estate Opportunities (REO) in its last financial year, even though the company made underlying losses of over €1bn.

The fees were made up of just over £4m in management fees, £13m in development fees and £1.9m in project management fees.

As part of the business plan drawn up with Nama, REO announced last week that some of the group's fee arrangements with Treasury will be restructured to cap the amount paid until June 2011.

Treasury Holdings controls nearly 67% of REO, whose best-known asset is London's Battersea power station.

Part of the loan used to acquire that site was transferred to Nama recently although Nama is very unlikely to fund construction on it.

However, Nama is expected to provide working capital to allow the completion of Montevetro, the office building under construction in Dublin which has drawn interest from several tenants.

REO is looking for a partner to allow it to develop Battersea power station but did not limit itself to that project, meaning other joint ventures may be examined on other sites.

Meanwhile The Battersea Society has written to the Commission for Architecture and the Built Environment raising concerns about REO's plans for the site because "the current application renders the power station virtually invisible from this southern aspect".

A retail impact assessment drawn up last month for the site says the draw of customers away from supermarkets in Clapham Junction and Wandsworth "is a disbenefit to the proposals which should be weighted against the benefits of the" proposed scheme. However, it did feel the convenience element of the proposal for the power station was "unlikely to [sic] a significant adverse impact on designated centres". It also said any future proposals to increase retailing at the power station or the surrounding area "would need to be carefully considered".