The £1.6bn (€1.76bn) sale of the commercial assets within the second phase of the Battersea Power Station (BPS) project in London has been agreed.

In January, S P Setia entered into an agreement to “explore the terms of a potential sale”, on completion, of the assets being developed within the Phase 2 project to a joint venture company to be formed by Permodalan Nasional Berhad (PNB) and The Employees Provident Fund of Malaysia (EPF).

Battersea Power Station Development Company (BPSDC) said today that the £50bn Malaysian government-owned entity PNB and the £140bn EPF have agreed to buy the assets in a deal expected to complete in the first quarter of next year.

PNB willl hold a 65% stake in the joint venture vehicle and EPF will hold the remaining 35% stake.

Phase 2 comprises the Power Station building itself which accounts for some six acres of the overall 42-acre BPS development.

The base purchase price is £1.58bn payable as an initial payment and then staged payments up to and including the practical completion of the Power Station building, BPSDC said.

PNB and EPF already own 70% of the entire BPS development through their holdings in the current developers and in the case of EPF through a direct 20% holding.

BPSDC said the latest deal will not affect the shareholdings in Battersea Project Holding Company Limited, which remain unchanged between S P Setia (40%), Sime Darby Property (40%) and EPF (20%).

Datuk Wong, the chairman of BPSDC, said: “This transaction is a further sign of Malaysia’s long-term commitment to Battersea Power Station. We are incredibly proud to be stewards of this iconic project.

“There is a real momentum on site and we look forward to working with all our partners to complete this significant redevelopment.”

Simon Murphy, the chief executive of BPSDC, said: “This reflects confidence in the excellent progress being made at Battersea Power Station and is an important step in ensuring this London landmark is appropriately owned and managed for future generations.

“We are working closely with all our shareholders and stakeholders to deliver this huge regeneration project on time and within budget and in so doing both achieve their objectives and create a vibrant new neighbourhood for Central London.”