The £1.6bn Battersea Power Station takeover by two Malaysian investors has been agreed.
The deal, which has been planned since January, will see commercial assets in Battersea Power Station acquired by Permodalan Nasional Berhad (PNB) and The Employees Provident Fund Board of Malaysia (EPF). The assets will be acquired from Sime Darby and SP Setia, its current owners.
PNB, one of the largest asset management companies in Malaysia and EPF, a retirement savings fund in the country, already own 70 per cent of the entire Battersea Power Station development through their holdings in the current developers. EPF already has a direct 20 per cent holding.
The transaction, one of the largest London property deals in recent history, is being undertaken by a joint venture vehicle owned 65 per cent by PNB and 35 per cent by the EPF.
The base purchase price is £1.58bn 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.
Battersea Power Station Development Company chief executive Simon Murphy 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.”
Development company chairman Datuk Wong added that the transaction is a further sign of “Malaysia’s long-term commitment to Battersea Power Station”.
A December deadline was set for the deal to be agreed in October following months of talks.
The transaction will not affect the shareholdings in Battersea Project Holding Company Limited, which remain unchanged between S P Setia (40 per cent), Sime Darby Property (40 per cent) and EPF (20 per cent).
PNB already has majority stakes in both SP Setia and Sime Darby Property.
The development company considers the move a reorganisation of ownership by its existing shareholders, transferring from a development structure to long-term asset manager.
Battersea Power Station Development Company said “significant progress” is being made on the restoration of the building, and it is due for completion in late 2020, with a public opening to follow in 2021.
There is 1m square feet of commercial space available in the power station building, which is set to be the site of Apple’s new London campus.
There will be 4,364 homes in the development, but they are not part of the deal announced today.