June 20, 2013
Malaysian team buy Battersea Power Station site
A consortium led by Malaysia's SP Setia Bhd has bought London's iconic Battersea power station for 400 million pounds ($623 million) and will redevelop the site into homes, offices and shops, the agents managing the sale said.
The consortium, which also includes Sime Darby Bhd, had won an exclusivity agreement on the 15-hectare site last month and had been carrying out due diligence since then.
The site is home to the brick power station with four white chimneys which dominates the south bank of the Thames. It is crumbling but is covered by a protection order so will have to be restored and redeveloped as part of the building plan.
Last month, about 15 bidders including Chelsea football club, owned by Russian billionaire Roman Abramovich, submitted plans last month to buy the site, the subject of repeated failed redevelopment attempts in the three decades since it shut.
The deal, which marks SP Setia's first foray into Europe, will see the four landmark chimneys retained as part of its plan.
The site came on to the market after a 5.5 billion pound plan by Irish developer Treasury Holdings for homes, shops and offices collapsed in December.
Several interested parties had planned to knock the chimneys down as it would become a more cost-effective development, sources told Reuters.
The site would be worth an extra 470 million pounds to a developer that could demolish the building and replace it with 1,200 apartments, calculations done for Reuters by property consultancy EC Harris showed.