Battersea Power Station owners said to sound out for £1.5b bank loans

PETALING JAYA (May 23): The Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) have allegedly sounded out to banks for a loan of around £1.5 billion (RM8 billion) for the Battersea Power Station project in London, reported Bloomberg.

The fund and national asset manager are expected to hire banks soon, said sources.

The borrowings will be used to refinance its current loans and complete the acquisition of commercial buildings that form part of Battersea Power Station’s second phase, they added.

In January, EPF and PNB said they plan to spend £1.6 billion to purchase the buildings, which include a residential and office development that will house Apple Inc’s UK headquarters.

EPF declined to comment while PNB said due diligence was ongoing and it was still too early to comment on the loan.

The Battersea Power Station building is undergoing a comprehensive reconstruction due for completion in late 2020, said EPF and PNB in January.

The rejuvenation of the iconic Grade II-listed building on the banks of the River Thames anchors the 42-acre mixed-use development which features buildings designed by acclaimed architecture firms Foster + Partners and Gehry Partners.