Malaysia’s savings funds Permodalan Nasional Berhad (PNB) and Employees Provident Fund (EPF) are jointly acquiring the Battersea Power Station building in London for £1.6 billion ($2.2 billion), Battersea Power Station Development Company (BPSDC) confirmed in a statement.
The Battersea Power Station Grade II listed building is currently approximately halfway through a comprehensive refurbishment and reconstruction that will be completed in late 2020.
On completion, the building will be approximately 25 per cent residential use, including over 250 apartments, the majority of which have already been pre-sold. Another 25 per cent is new office space, which has already been pre-let to American IT giant Apple in one of London’s largest ever office pre-lets.
Both PNB and EPF already own 70 per cent of the Battersea Power Station project directly and through their holdings in the current developers, Sime Darby Property Bhd and SP Setia Bhd, BPSDC revealed.
“BPSDC confirms that Battersea Project Holding Company (BPHC) has approved the commencement of an exclusive transaction aimed at reorganising the ownership of The Power Station building to create a long-term asset management and ownership structure,” the company said.
The deal will not affect the shareholdings of Sime Darby Property, SP Setia and EPF in BPHC, which is the holding company of the Battersea project, and 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,” BPSDC said.
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, according to a BPSDC spokesperson.
“The proposed transaction reflects the shareholders’ long-term commitment to Battersea and London,” the spokesperson said.
The five-year project is the largest historic building project ever undertaken in the UK and when finished, will become the heart of the wider 42-acre mixed-use scheme.