Joint sales advisers, Knight Frank and Ernst & Young Real Estate Corporate Finance, have announced the exchange of contracts on the 39.1-acre Battersea Power Station site. A consortium comprising SP Setia, Sime Darby and the Employees’ Pension Fund of Malaysia have exchanged contracts on the site for £400m.
The consortium has formed a company – Battersea Project Holding Company Limited (BPHCL) – to manage the deal. Sime Darby and SP Setia each ha a 40% stake in BPHCL, while the EPF has the remaining 20%. BPHCL’s wholly owned subsidiary Battersea Project Land Company Ltd subsequently signed the sale and purchase agreement.
Fergal O’Reilly, director at joint agent Ernst & Young Real Estate Corporate Finance, says: “The sale of Battersea Power Station (BPS) is testament to the continuing draw of London as a centre for global investment.”
“SP Setia was the highest deliverable bid from the process and provides our clients and the creditors with a significant return.”
Stephan Miles-Brown, head of residential development at joint agent Knight Frank, says, “Throughout the six-month marketing process, which attracted investors from countries as diverse as Kazakhstan, South Africa, China, Indonesia and Brazil, we enjoyed excellent support and encouragement from all key stakeholders: in particular – the London Borough of Wandsworth, the Mayor’s office, Transport for London, and English Heritage.”
BPHCL say they plan to implement the approved master development plan (pictured above) for the Battersea site which was drawn up by architect Rafael Viñoly. The current planning consent has provision for 3,500 homes and 1.7 million square feet of office space, as well as for hotel and retail units. It will also provide London with two new Underground stations on the Northern line.
Wandsworth Council leader Ravi Govindia welcomed the deal, saying: “We are delighted that the new owners share our ambitions for the area. The development here is key to creating jobs and generating funding support for the Northern Line Extension which will bring economic benefits throughout the wider Vauxhall Nine Elms area.”
The wider regeneration of the 450 acre Nine Elms Opportunity Area is expected to deliver a total of around 16,000 new homes and 25,000 new jobs. Three quarters of these new homes are already in the planning pipeline or under construction.