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  • You are here:M&A

Malaysia 'to investigate' £1.6bn Battersea deal

A deal to transfer the ownership of Battersea Power Station between Malaysian investors is to be investigated by the country’s government, according to a report by the Guardian.

In an interview with the paper, the leader of Malaysia’s new coalition government Anwar Ibrahim said his administration planned to investigate the £1.6bn deal, which involved a state fund.

Malaysian state fund Permodalan Nasional Berhard (PNB) and the Employees Provident Fund of Malaysia (EPF) agreed the deal to take ownership of the iconic Grade II-listed building in January.

EPF and PNB already owned around 70 per cent of the high-profile 17 ha scheme through shareholdings in the development company.

Mr Ibrahim told the Guardian that the Malaysian government may seek to renegotiate the deal, depending on the outcome of its investigation.

“All these deals which are considered dubious, including investments in housing in London, will have to be investigated. Yes, that includes Battersea,” he is quoted as saying.

“Because they were made using state funds. We have to be convinced that this was the right investment decision and that there was no political influence or direction [within Malaysia].

“It’s clearly a political decision to invest. If there is something wrong then we will want to renegotiate. We are looking at umpteen deals extending to hundreds of billions of ringgit [Malaysian currency] – that is tens of billions of dollars.”

Following the announcement of the deal in January, a source close to the project told CN that the agreement would “ensure delivery of the building”.

Due to be completed by 2020, the redeveloped power station will contain 75 per cent commercial space, including Apple’s new UK headquarters.

Battersea Power Station Development Company has been contacted for comment. 

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