Joint sales advisers, Knight Frank and Ernst & Young Real Estate Corporate Finance, announce today the exchange of contracts of the 39.1-acre Battersea Power Station site, the last significant piece of prime central London remaining for redevelopment.
The current planning consent has provision for 3,500 homes, office space, hotel and retail units.
Following a global marketing process that started in February 2012 and covered all major world wealth centers, a consortium comprising SP Setia, Sime Darby and the Employees' Pension Fund of Malaysia have exchanged contracts on the site for £400 million (nearly 500 million).
Fergal O'Reilly, Director at joint agent Ernst & Young Real Estate Corporate Finance, says, "The international marketing campaign has achieved a fantastic result, which some thought unlikely if not impossible, returning a number of highly credible bids from across the globe, and ultimately resulting in an exchange of contracts with the SP Setia consortium.
"The sale of Battersea Power Station (BPS) is testament to the continuing draw of London as a center for global investment.
"The successful process demonstrates Knight Frank and Ernst & Young's global reach and expertise in marketing such a high profile, internationally renowned asset. 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.
"We have now found a skilled and extremely professional purchaser who we feel can take on this site and produce the best result for London the redevelopment of a prominent, listed building at a prime, waterfront location. The finished scheme will be the jewel in the crown of the Nine Elms Development. Knight Frank and Ernst & Young have relished their roles in selling an icon and will observe its development with great interest."
The current planning consent has provision for 3,500 homes and 1.7 million ft² (approx. 158,000 m²) of office space, as well as for hotel and retail units. It will also provide London with two new Underground stations, extensions from the Northern line.
Source: Knight Frank