New Malaysian JV buys Battersea Power Station stake for €1.8b

The transaction does not include the surrounding 42 acres (17 hectares) of land which are at the centre a huge regeneration project in London. This element has been retained by the Malaysian development consortium of SP Setia, conglomerate Sime Darby and EPF. 

According to developer SP Setia, with residential pre-sales of over 90% across the site and the entire 470,000 ft2 (40,000 m2) of office space in the Battersea Power Station building let out to Apple, the expression of interest from PNB and EPF to be long term asset holders in Battersea Power Station project is 'very timely'.

The proposed transaction would 'enhance SP Setia's investment returns and allow SP Setia to capitalise on arising opportunities as a property developer while continuing to play a significant role in the overall development of the project', the developer said.

'It will also enable SP Setia to focus on securing the development’s profit and investment returns from the remaining development phases in the Battersea Power Station project', it added.

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

In 2012 the Malaysian consortium acquired Battersea Power Station in London from administrators Ernst & Young for £400 mln (€454 mln).

The sale of the iconic building and the 16-hectare site, described at the time as the last undeveloped riverside site in central London, kick-started the regeneration of the Nine Elms area. The new owners plan to develop 4,364 homes, 160,000 m2 of office space, retail units and a park at the site.

Phase 1 (known as Circus West Village) which consists of 12 residential blocks and 100,000 ft2 (9,300 m2) of restaurants, shops, offices and leisure accommodation is already complete and was handed over to the purchasers and tenants over the course of last year.