Malaysian investors to acquire Battersea Power Station
January 18, 2018 - London
Permodalan Nasional Berhad, the fund manager with £50bn of assets under management, will own the building jointly with Employees Provident Fund of Malaysia, which already owns a fifth of the wider Battersea development site.
PNB will buy its stake in the building from the Malaysian developers Sime Darby Property and SP Setia, which between them own 80 per cent of the 48 acre site.
PNB, which is a majority stakeholder in both developers, already indirectly owns a large proportion of Battersea.
According to people familiar with the matter, the cash injection will allow the development of the building — which will host Apple’s new UK headquarters — to be completed amid rising costs.
Built in the 1930s, the coal-fired power station stopped operating in 1983 and gradually fell into disrepair, with multiple attempts to redevelop it floundering due to costs and practical difficulties in converting the gigantic site.
It was eventually sold to a Malaysian consortium led by property developer SP Setia in 2012, for 400 million pounds, and since then has been undergoing construction work on a vast scale. The project is due to be completed in late 2020.
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