A Malaysian investor has agreed to buy a direct stake in London’s landmark Battersea Power Station in a move that values the building at £1.6bn – making it the biggest property deal carried out in the UK.
The proposed deal would make it the UK’s biggest ever property transaction, ahead of the £1.28bn sale of the ‘Walkie Talkie’ skyscraper in the City last year, which was purchased by a Hong Kong firm.
The Battersea Power Station Development Company (BPSDC) is in the middle of a five-year project to transform the Grade II listed building into 250 apartments, along with retail and leisure units and office space, which will be partly used for Apple’s UK headquarters.
Today’s surprise announcement comes after the costs of the restoration soared from an initial forecast of around £750m.
The huge technical challenge of ripping out far more asbestos than expected, along with soaring constructions costs – much related to the shortages of skilled workers – has seen the costs spiral.
A slice of London’s landmark Battersea Power Station has been sold to Malaysian investor Permodalan Nasional Berhad (PNB) in a £1.6 billion deal
The BPSDC is in the middle of a five-year project to transform the Grade II listed building into 250 apartments, along with retail and leisure units and office space, which will be partly used for Apple’s UK headquarters
Malaysian asset management firm Permodalan Nasional Berhad (PNB) will own a majority of Battersea Power Station, alongside Employees Provident Fund of Malaysia.
BPSDC said talks were at an early stage, but the transaction had been approved by the Battersea Project Holding Company Limited.
The developers said today the sale would guarantee the restoration of the building was completed.
A spokesman for BPSDC said: ‘The Battersea Power Station building would provide both investors with a unique investment opportunity to own an iconic development in the heart of London.
‘With the conclusion of the proposed transaction, BPSDC will remain the active manager of the development.
‘This creates a solid platform that will ensure the protection, active management and control of the historically important building are maintained.’
Battersea Power Station was opened in 1933, but the building was not finished until 1953 after work was delayed by the Second World War. It generated 20 per cent of London’s electricity supply, until it finally stopped producing power in 1983
Battersea Power Station was opened in 1933, but the building was not finished until 1953 after work was delayed by the Second World War.
It generated 20 per cent of London’s electricity supply, until it finally stopped producing power in 1983.
The coal-fired generator stopped heating, lighting and powering London homes and businesses — including Buckingham Palace — in 1983 after a 50-year operating life.
The BPSDC spokesman added: ‘The Malaysian shareholders purchased the site in September 2012 and have since made significant progress including the successful completion of the first phase of the development which is now home to over 1,000 residents and a collection of independent retailers and restaurateurs.
‘The proposed transaction reflects the shareholders’ long-term commitment to Battersea and London.’
The ownership shake-up will not affect the shareholdings of Sime Darby Property, SP Setia and EPF in the Battersea Project Holding Company, BPSDC said.
Today’s surprise announcement after the costs of the restoration soared from an initial forecast of around £750m