Battersea Power Station Development Company has confirmed the forthcoming transfer of ownership of the Battersea Power Station to Malaysian sovereign wealth fund Permodalan Nasional Berhad (PNB) and Employees Provident Fund of Malaysia (EPF) for a staggering amount of £1.6bn.
The deal overtakes the £1.28bn paid by Chinese investors for the Walkie Talkie building also in London last year. The £1.6bn lucrative deal will transfer ownership of Battersea Power Station, but not the 42-acre site around the building that features several residential and retail development sites.
PNB and EPR are buying the stake from Malaysian developers Sime Darby Property and SP Setia, in which PNB is also a major shareholder, making PNB indirectly an owner of the project. The internal reconstruction of assets will also switch EPF from a developer to an asset manager, while it also owns 20% of the entire development.
The Battersea Power Station Grade II* listed building is currently undergoing a reconstruction and an extensive refurbishment to host 40,000 sq ft. office space, a food market and 500,000 sq ft for the new Apple HQ. The tech giant has taken the space in one of UK’s largest single office deals in history.
The comprehensive revamp is set to be completed in late 2020 when Apple will eventually move its 1,400 staff to the Power Station and the new Zone 1 Underground will open to the public.
According to the Battersea Power Station Development Company, the Battersea Power Station building provides both investors with a unique investment opportunity to own an iconic development in the heart of London. This deal creates a solid platform that will ensure the protection, active management and control of the historically important building are maintained.
Our team here at Copperstones has welcomed the news since the project has just acquired a clear vision and a steady source of funds for many years to come. The new shareholders are determined to ensure the completion of the project in the agreed time frame, delivering a groundbreaking project to receive worldwide attention and praise.
The £1.6bn massive deal will only add to the development’s value as most of the upscale homes, including the apartments inside the historic Power Station, have been sold.
“The Malaysian shareholders purchased the site in September 2012 and have since made significant progress including the successful completion of the first phase of the development which is now home to over 1,000 residents and a collection of independent retailers and restaurateurs. The proposed transaction reflects the shareholders’ long-term commitment to Battersea and London” the BPSDC spokesperson added.
The regeneration of the London landmark will take approximately 5 years to complete and will comprise an innovative 42-acre mixed-use scheme. After several failed attempts to pay homage to Battersea Power Station, the Battersea Power Station regeneration project is the largest historic building project ever undertaken in the UK. It will add 4,360 luxury homes, 3 private hotels, state of the art amenities and 7 hectares of public space including parks and community hubs.
The Battersea Power Station regeneration project is currently in Phase 2 and 3, as Phase 1 was successfully completed in Fall 2017, with the first residents and retailers moving in.
Discussions are at a preliminary stage and a further announcement will be made in due course.