Battersea Power Station bought for £400m

Stat of the day: £400m. A consortium of Malaysian companies last night acquired Battersea Power Station, which has been empty for 29 years, for £400m.

by Rebecca Burn-Callander
Last Updated: 09 Oct 2013

It's around £100m less than the valuation this time last year, but then Battersea Power Station has been something of a poisoned chalice to property developers. Deal after deal has fallen through over the years, as interested parties fail to raise the cash necessary to turn the listed building into a hotel/shopping mall/flats/and all manner of other developments. It's been six long months since Battersea Power Station's last suitor, the debt-ridden Real Estate Investments, was forced to walk away from the deal.

This time, the chancers are a set of Malaysian companies, SP Setia, Sime Darby, and the Employees Provident Fund (the country's largest pension fund), who are hoping to divide the iconic building on the Thames into office space, 3,500 homes, shops, and a hotel. Under the terms of this joint venture, Sime Darby and SP Setia each have a 40% stake, While EPF owns the remaining 20%. The development will cost around £8bn in total.

Liew Kee Sin, chief executive of SP Setia, has described the Grade II-listed structure as 'undoubtedly London’s most important and central urban regeneration site'. Indeed, the redevelopment of the site will create some 25,000 jobs in the area. And there will also be a new Tube station at the site, linked to the Northern Line, costing a round £200 million to build.

The power station's administrators will be crossing all their fingers and toes that they've finally struck it lucky with this lot. But there may be one person out there hoping against hope that the deal goes pear-shaped: Roman Abramovich, billionaire Chelsea Football Club owner, who was desperate to turn the site into Chelsea's new stadium.  

Oh well, you can't win them all, Roman.

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