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Chelsea FC loses on Battersea Power Station in £400m deal

Chelsea Football Club has lost in its attempt to turn Battersea Power Station into its new home, after administrators chose a Malaysian joint venture bid worth £400 million.

It was confirmed in February that the site would be offered for sale on the open market, after Wandsworth Council announced the decision at the end of 2011.

Chelsea FC announced last month that it would include a “significant contribution to the Northern Line extension” as part of its plan to buy the site and turn it into a 60,000 seater stadium.

SP Setia and Sime Darby have also indicated they will support the Northern Line extension as part of their proposals and both bids had insisted they would retain the famous chimneys stacks on the site.

In a statement on its website, the club confirmed its bid, with property development partner Almacantar, and its belief that the site has the potential to become “one of the most iconic football stadiums in the world”.

A statement from Ernst & Young said: “Following an extensive global marketing campaign, undertaken by Ernst & Young Real Estate Corporate Finance and Knight Frank LLP, the Joint Administrators are pleased to announce that on Wednesday 6 June 2012 they entered into an exclusivity agreement with SP Setia and Sime Darby and are working towards a timely exchange and completion of the site and associated land.”

However, in a statement today, Chelsea FC said: “Chelsea Football Club has been informed that the administrators of the Battersea Power Station site have entered into an exclusive agreement with another party to carry out their due diligence.

“We will all be able to speak with more confidence about the site’s future once the exclusivity period is over and the preferred bidder has been able to assimilate their risks properly and confirm the bid.

“We are disappointed not to be selected as the preferred bidder for Battersea Power Station, as we believe we can create an iconic and architecturally significant stadium on the site in a scheme which is commercially viable and of great benefit to the Wandsworth community and London generally.

“We have been clear throughout this process that Battersea is one of a limited number of options the club is considering.”

Readers' comments (1)

  • Disgraceful, bent decision. What's wrong with a bit of post-tender, pre-award discussion/negotiation?

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