Sale of Battersea Power Station completed

LONDON (Sept 6): The sale of the iconic Battersea Power Station was completed on Tuesday, making the consortium of S P Setia Bhd, Sime Darby Bhd and the Employees Provident Fund (EPF) the official owners of the site.

The consortium formed Battersea Power Station Development Co (BPSDC) to manage the development of the 39-acre site. BPSDC will be headed by newly appointed CEO Rob Tincknell.

The £8 billion (RM39.6 billion) development is scheduled to undergo preparatory work later this year before starting construction in the second half of 2013. "With the sale now complete, we can move forward with our vision to build a vibrant, accessible and functional town centre for the Vauxhall, Nine Elms, Battersea area with the power station at its heart, creating up to 26,000 new jobs in the process," S P Setia president and CEO Tan Sri Liew Kee Sin said at a media briefingon Wednesday .

"We hope to start selling by March or April next year," said Liew, adding that he expects to sell the apartments at around £900 to £950 psf.

The site was acquired, following an open market tender, for £400 million through a special purpose vehicle known as Battersea Project Holding Co Ltd (BPHC) in which S P Setia and Sime Darby have a 40% stake each with the EPF holding the remaining 20%.

Also present at the briefing was Sime Darby president and group chief executive Datuk Mohd Bakke Salleh and EPF CEO Tan Sri Azlan Zainol. Phase one of the development will comprise multiple residential buildings with 800 apartments on top of a commercial podium, said Tincknell.

The development of the Battersea site was granted planning permission in 2010 and is the largest planning consent ever granted in central London. At a glance, the proposals will offer over 3,400 homes, 160,933 sq m of office space, 51,349 sq m of retail space and two hotels.

The consortium has committed to supporting construction of the proposed Northern Line extension into the Nine Elms area. This is a major part of the regeneration vision for the area and has extensive political support with the backing of the London Borough of Wandsworth, the Mayor of London and the UK national government in its national infrastructure plan.

This article appeared in The Edge Financial Daily on Sept 6, 2012.

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