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Battersea Power Station deal delayed again

The £1.6bn takeover of Battersea Power Station by a Malaysian investor has been delayed for the second time, with the deadline to finalise the deal now extended to late September.

In January Battersea Project Holding Company revealed it had approved an agreement with investors Permodalan Nasional Berhad (PNB)and the Employees Provident Fund (EPF) of Malaysia to take over the Grade II-listed building.

The £1.6bn agreement is set to be one of the largest London property deals in recent history, beating the £1.28bn paid by Chinese investors for the Walkie Talkie tower last July.

However, both parties have now agreed to extend the deadline for signing the deal until 30 September.

A filing by one of the Battersea development’s stakeholders SP Setia confirmed the extension, and said both parties were “continuing to work positively and constructively” to complete the transaction.

This is the second time the deal has been put back, after an initial extension until 30 June was agreed back in May.

Malaysian leader Anwar Ibrahim told The Guardian in June that his government would be investigating the transfer of Battersea to EPF and PNB, as it involved a state fund.

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

The completion of the deal would see the two investors take control of the Battersea Power Station building’s commercial space through a long-term asset management and ownership structure.

EPF and PNB also owns around 70 per cent of the 17 ha Battersea development through direct ownership and shareholdings in the scheme’s developers. 

EPF currently has a 20 per cent direct stake in Battersea Power Station Development Company. 

The overall Battersea Power Station development will provide 4,364 homes when completed in 2028.

The two companies currently developing the scheme are Malaysian-owned firms Sime Darby Property and SP Setia Bhd, which each directly own 40 per cent of the whole development. 

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