Malaysian investors to acquire Battersea Power Station

Marco Green
January 19, 2018

The shareholdings in Battersea Project Holding will remain unchanged between Sime Darby Property, SP Setia and EPF.

SP Setia Bhd's earnings may be lifted by at least RM400 million from the potential sale of commercial assets being developed within the Phase 2 of the Battersea Power Station development in London, according to PublicInvest Research.

Permodalan Nasional Berhad (PNB), the Malaysian asset manager, and the Employees Provident Fund of Malaysia (EPF) are the prospective buyers and already hold stakes in the 42-acre site.

When completed, the potential sale will be worth approximately £1.61 billion (RM8.8 billion) and sold to a joint venture company to be formed between PNB and EPF.

PNB and EPF are long term investors with existing real estate exposures in the United Kingdom market.

The deal will become one of Britain's biggest real estate transactions, surpassing the £1.28 billion Chinese investors paid for the Walkie Talkie building in London past year.

Reports said the construction cost has almost doubled from £750 million to £1.5 billion.

The Grade II listed building is now approximately half way through a comprehensive refurbishment which is expected to complete in late 2020.

Tech-giant Apple has already agreed to lease a quarter of the building for its new United Kingdom headquarters, it will also contain 250 luxury apartments and stores.

The first phase of the redevelopment project was officially launched in 2013, with the promised construction of 800 apartments, suites, townhouses and penthouses across eight buildings, as well as art galleries, a Power Station Design shop, independent coffee shops, a boutique theatre, 35,000 sq ft of creative business studios, a 15,000 sq ft gym, an indoor swimming pool and a health spa.

It generated 20 per cent of London's electricity supply, until it finally stopped producing power in 1983.

"The proposed transaction reflects the shareholders' long-term commitment to Battersea and London", the spokesperson further added.

Discussions are at a preliminary stage and a further announcement will be made in due course.

Other reports by Click Lancashire

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