Malaysia’s SP Setia and Sime Darby have signed an exclusivity agreement to redevelop Battersea Power Station.
In a statement SP Setia and Sime Darby said they had signed an exclusivity agreement with the joint administrators to buy the site for £400m. CoStar reports the Employees Provident Fund, also Malaysian, are in discussions about funding, and are working with RREEF and Jones Lang LaSalle.
Administrators handling the sale of the landmark site have now identified the consortium as the “preferred bidder”. A 28 day due diligence period is now underway.
The Mayor of London, Boris Johnson, welcomed the progress, saying: “Today I believe we see light at the end of the tunnel in the sorry saga that has dogged this great landmark for decades and the surrounding area.
“There is still detailed work to do but this is an encouraging step forward. In particular the firm commitment on the table to invest in the vital new transport link will drive the regeneration of this important corner of the capital that has been neglected for so long.”
Leader of Wandsworth Council Ravi Govindia said: “There is still some way to go but this is potentially very good news. The power station is one of the biggest development opportunities in Nine Elms and key to extending the Northern Line into Battersea.
“We’re making tremendous progress towards transforming this old industrial stretch of the South Bank which will provide up to 25,000 new jobs for London . It’s important that this site and its iconic building are not left behind and that a new developer is brought in who understands our vision for the new Nine Elms.”
Nine Elms programme director Helen Fisher said: “This is an important step forward in securing the long-term future of this exciting new district of London and in delivering the Northern Line Extension.
“From a development perspective there is lots happening on a daily basis across Nine Elms and the confirmation of a preferred bidder for the power station adds to the momentum.”
This all leaves Chelsea FC, who had also bid for the site, stuck at Stamford Bridge, at least for the time being. The club issued a statement saying: “We are disappointed not to be selected as the preferred bidder for Battersea Power Station, as we believe we can create an iconic and architecturally significant stadium on the site in a scheme which is commercially viable and of great benefit to the Wandsworth community and London generally.”