SEAN Mulryan's Ballymore Properties will have to contribute to an extension of London's Tube network to the €5bn Battersea Station redevelopment being planned by Real Estate Opportunities (REO), a company majority owned by Treasury Holdings.

Mulryan, who at one stage came close to buying the power station himself, has been buying up land in the immediate area for the past year ahead of the redevelopment of the area.

The 38-acre power station forms part of a larger 100-acre site linking with Nine Elms and Vauxhall which London's governing authority is keen to see rejuvenated for high density use.

The extension of the Tube from the Northern Line to Battersea is expected to cost about €450 million and local landholders will have to contribute.

Ballymore owns four sites in the area which it acquired for more than €210 million. Foster + Partners is designing a scheme for Ballymore's sites.

REO last week unveiled its plans for the regeneration of the Battersea Power Station and surrounding area.

Designed by Rafael Vinoly, who made an unsuccessful submission to design the U2 tower in Dublin's docklands, the central feature of the new development there will be a 300-metre chimney, surrounded by apartments, which will naturally ventilate offices below.

In addition REO will spend at about €190m repairing the power station itself, which is a listed building. A hotel, apartments and shops will be developed within the station.

Treasury Holdings has a 67% interest in REO. Treasury is owned by Richard Barrett and Johnny Ronan and is involved in projects in China, Russia, Sweden, Britain and Ireland.