Battersea Power Station Development Company (BPSDC) has confirmed Battersea Phase 2 Holding Company and Permodalan Nasional Berhad (PNB) and The Employees Provident Fund Board of Malaysia (EPF) for PNB and EPF have entered an agreement to acquire the commercial assets within Phase 2 of the Battersea Power Station (BPS) development. Phase 2 comprises the Power Station building itself which accounts for some six acres of the overall 42 acres BPS development. The transaction will create a long-term asset management and ownership structure for this iconic building.
PNB, which is one of the largest asset management companies in Malaysia, and the EPF, which is Malaysia’s premier retirement savings fund, already owns 70% of the entire Battersea Power Station development through their holdings in the current developers and in the case of EPF through a direct 20% holding. The transaction is being undertaken by a joint venture vehicle owned 65% by PNB and 35% by the EPF.
The base purchase price is €1.76bn (£1.583bn) payable as an initial payment and then staged payments up to and including the practical completion of the Power Station building. The transaction is expected to complete in Q1 2019. The transaction will not affect the shareholdings in Battersea Project Holding Company Limited, which remain unchanged between SP Setia (40%), Sime Darby Property (40%) and EPF (20%). The shareholders are committed to the development and positive on its long-term prospects. BPSDC continues as the development, estate and asset manager for all Phases of the development.
Significant progress is being made on the restoration of the Power Station building which is due for completion in late 2020 and opening to the public in 2021. Of the one million square feet of commercial space available in the Power Station building, more than 50% has already been let as office space to Apple for their new London Campus and to No18, a business members club owned by IWG. The retail and leisure spaces were launched to the market earlier this year and strong interest has been seen from a wide-ranging collection of UK and international brands.
Datuk Wong, Chairman of BPSDC, said: “This transaction is a further sign of Malaysia’s long-term commitment to Battersea Power Station. We are incredibly proud to be stewards of this iconic project. There is a real momentum on site and we look forward to working with all our partners to complete this significant redevelopment.”
Simon Murphy, Chief Executive of BPSDC, said: “This reflects confidence in the excellent progress being made at Battersea Power Station and is an important step in ensuring this London landmark is appropriately owned and managed for future generations. We are working closely with all our shareholders and stakeholders to deliver this huge regeneration project on time and within budget and in so doing both achieve their objectives and create a vibrant new neighbourhood for Central London."
