Saturday 22 July 2017

Battersea power station flounders

Two of the four iconic smokestacks of the former Battersea Power Station
Two of the four iconic smokestacks of the former Battersea Power Station

The developers behind Battersea Power Station in London have delayed releasing its latest phase of apartments at the site in an apparent vindication of Nama's strategy to sell out of the project four years ago.

The iconic power station has been derelict for over 30 years and Nama controversially took over loans linked to the property in 2011 before selling it a year later.

Nama, along with other lenders sold the site for the equivalent of €600m but were heavily criticised with claims it could have netted even more if it had held on to the property and allowed it to be developed.

Yesterday however it emerged that Battersea developer, The Battersea Power Station Development Company (BPSDC), is delaying the release of part of the third phase of the development because of a "softening" of the market.

According to industry journal 'PropertyWeek', BPSDC launched the first part of the third phase in October 2014 but has only sold 350 of the 539 flats.

There are also around 20 apartments from phase two that are yet to sell.

Nama sold off the bulk of its London assets between 2011 and 2014. This year the property market there has weakened sharply with a slew of housing schemes struggling to sell.

Irish Independent

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