Malaysians bag Battersea Power Station for EUR 497m

A Malaysian consortium has acquired Battersea Power Station in central London for £400 mln (EUR 497 mln). The consortium comprises listed Malaysian property developer SP Setia, conglomerate Sime Darby and the Employees' Pension Fund of Malaysia.

Joint sales advisers Knight Frank and Ernst & Young Real Estate Corporate Finance described the 16-hectare Battersea Power Station site as the last significant piece of prime central London remaining for redevelopment. The current planning consent provides for 3,500 homes and 160,000 m² of office space, as well as for hotel and retail units. It will also provide London with two new Underground stations, extensions from the Northern line.

Fergal O'Reilly, director at Ernst & Young Real Estate Corporate Finance, said: 'The international marketing campaign has achieved a fantastic result, which some thought unlikely if not impossible, returning a number of highly credible bids from across the globe, and ultimately resulting in an exchange of contracts with the SP Setia consortium. The sale of Battersea Power Station (BPS) is testament to the continuing draw of London as a centre for global investment.'

The search for a buyer for the site began last February after creditors Lloyds Bank and Ireland's asset agency NAMA took control of the asset and appointed administrators. London-listed Real Estate Opportunities (REO) had acquired the site in 2006. By December last year REO held a 54% stake in the asset but was unable to meet debt repayment demands.