New Battersea owners plan £8bn urban regeneration
THE new owners of London's iconic Battersea power station plan to spend £8bn (€10bn) developing the location after completing the acquisition of the site yesterday for £400m (€501m) from sellers including the National Asset Management Agency (NAMA).
Once controlled by Treasury Holdings' REO subsidiary, a deal to sell the Battersea power station to a Malaysian consortium was agreed in May.
NAMA is set to be repaid all the money it's owed in relation to debts attached to the property, as is Lloyds, the other major creditor.
Between them, they were owed £324m. REO had owned 54pc of a special-purpose vehicle called Battersea Power Station Shareholder Vehicle.
Treasury Holdings, controlled by Richard Barrett and Johnny Ronan, had planned to spend about £5.5bn redeveloping the 39-acre power station site and had received planning permission in 2010 for a scheme comprising residential and commercial elements.
The special-purpose vehicle was placed in administration earlier this year and a sales process began.
Just before it was put in administration an offer from Malaysian firm SP Setia to buy NAMA's and Lloyds's debt at a 15pc discount was rejected.
Chelsea Football Club, owned by Russian billionaire Roman Abramovich, was among the interested bidders when the site was put up for sale. It wanted to build a new stadium there.
SP Setia emerged as the winning buyer, however, backed in a consortium that also includes Malaysia's biggest pension fund and Sime Darby, the country's largest operator of palm oil plantations.
They plan to spend £8bn developing the site over the next 15 years in a project that will employ 25,000 people.
"The Battersea Power Station site is undoubtedly London's most important and central urban regeneration site," said Tan Sri Liew Kee Sin, president and chief executive of SP Setia.
"This is truly a golden opportunity for the partners to make our mark as global property players."