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Battersea Power Station at night, London.
Battersea Power Station at night, London. Photograph: Joe Maher/PR
Battersea Power Station at night, London. Photograph: Joe Maher/PR

Battersea Power Station to be sold for £1.6bn

This article is more than 6 years old

Malaysian sovereign wealth fund PNB to buy iconic building in one of UK’s largest ever property deals

Battersea Power Station is to be sold for £1.6bn in one of Britain’s largest ever property deals.

Malaysian sovereign wealth fund Permodalan Nasional Berhad (PNB), alongside Employees Provident Fund of Malaysia, have announced their intention to purchase the Grade II listed building, Battersea Power Station Development Company said in a statement on Thursday.

The £1.6bn sale will transfer ownership of Battersea Power Station, but not the 42 acre site around the building, overtaking the £1.28bn paid by Chinese investors for the Walkie Talkie building in London last year.

Development is continuing at the mixed use regeneration project, which will include retail and leisure units, commercial space, and 250 apartments, which have already been sold.

A company source insisted that the deal with the Malaysian investors is not linked to reported financial difficulties on the project, but rather a benefit of Apple’s decision to base their UK headquarters in the former coal-fired power station’s central boiler house from 2021, which has guaranteed a future income stream.

The project’s current affordable housing provision would be unaffected by the proposed deal, the source added, which was slashed from 636 homes to just 386 last year, amounting to 9% of the planned homes in the Battersea Power Station redevelopment project.

Building projects across London have faced rising constructions costs as a result of the drop in the value of sterling after the Brexit vote, and increased difficulties in attracting skilled labourers.

After the proposed deal was announced on the Malaysian stock exchange, a BPSDC spokesperson said: “The Battersea Power Station building would provide both investors with a unique investment opportunity to own an iconic development in the heart of London.

“With the conclusion of the proposed transaction, BPSDC will remain the active manager of the development. This creates a solid platform that will ensure the protection, active management and control of the historically important building are maintained.”

August 1936: The original design of Battersea Power Station, with only two chimneys. Photograph: Fox Photos/Getty Images

Battersea Power Station opened in 1933, but the generator was not completed until 1953 after construction was delayed by the second world war.

The power station generated 20% of London’s electricity supply at its peak, until it stopped producing power in 1983.

“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,” a BPSDC spokesperson added.

“The proposed new [financial] structure will not affect the shareholdings of Sime Darby Property, S P Setia and EPF in the Battersea Project Holding Company (the joint venture company which is the holding company of the Battersea project).”

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More on this story

More on this story

  • Malaysia to investigate Battersea Power Station property deal

  • London mayor blasts council over cut to affordable homes in Battersea revamp

  • Battersea Power Station developer slashes number of affordable homes

  • Inside the new Battersea Power Station

  • Apple moves UK HQ to Battersea power station boiler room in London

  • Battersea is part of a huge building project – but not for Londoners

  • Battersea power station: Frank Gehry unveils plans for his first buildings in England

  • Battersea Power Station flat developers impose UK-only sales

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