Malaysian fund manager Permodalan Nasional Bhd (PNB) and the Employees Provident Fund of Malaysia (EPF) have signed a deal to jointly acquire the commercial properties in phase 2 of the Battersea Power Station (BPS) development in London for £1.58 bn (€1.8 bn).
The agreement concludes the negotiations for the planned purchase which began in January of this year.
Under the terms, a special purpose vehicle (SPV) formed to execute the deal has acquired the commercial properties in the development's second phase from Battersea Phase 2 Holding Company (BP2HCL), a wholly owned subsidiary of Battersea Project Holding Company Limited (BPHCL).
BPHCL is owned by a consortium of Malaysian shareholders which includes S P Setia Bhd (40%), Sime Darby Property Bhd (40%) and EPF (20%). PNB has a 65% stake in the SPV, while the remaining 35% is held by the EPF.
Phase two is expected to reach completion at the end of 2020, opening to the public in 2021. The commercial area purchased chiefly comprises 540,000 ft2 (50,150 m2) of grade A offices, 420,000 ft2 of retail, food & beverage and leisure as well as event spaces.
500,000 ft2 of the office space has been leased to Apple for its new London campus.
London-based Battersea Power Station Development Company (BPSDC) will continue to manage the project, whilst subsidiaries of BPSDC Battersea Power Station Asset Management Limited and Battersea Power Station Estate Management Limited will be appointed as the asset manager and property manager after practical completion of the power station building for an initial term of 10 years.
In 2012 the Malaysian consortium acquired Battersea Power Station in London from administrators Ernst & Young for £400 mln (€454 mln).
The 42-acre BPS site is being developed over seven phases, managed by BPSDC on behalf of the shareholders. It had successfully completed and delivered 867 residential units in the first phase over the past two years.
The sale of the iconic building and the 16-hectare site, described at the time as the last undeveloped riverside site in central London, kick-started the regeneration of the Nine Elms area. The new owners plan to develop 4,364 homes, 160,000 m2 of office space, retail units and a park at the site.
Phase 1 (known as Circus West Village) which consists of 12 residential blocks and 100,000 ft2 (9,300 m2) of restaurants, shops, offices and leisure accommodation is already complete and was handed over to the purchasers and tenants over the course of last year.