PNB and EPF had on Thursday signed a heads of terms with Battersea Phase 2 Holding Company Ltd to buy the commercial asset. The latter is a unit of Battersea Project Holding Company Ltd in which SP Setia and Sime Darby Property own a 40% stake each.
The proposed transaction is to reorganise the ownership of the Battersea Power Station’s commercial property under PNB and EPF who are long term investors whilst Sime Darby Property and SP Setia are principally property developers.
The Power Station’s commercial property represents Phase 2 of the enlarged Battersea Power Station rejuvenation project.
Sime Darby and SP Setia said both PNB and EPF had expressed their interest to explore the transaction following strong progress made to date under phase 2 as over 90% of residential units having been pre-sold and the letting of the entire office space in the power station building (approximately 470,000 sq ft) to Apple.
“Given the progress that has been made to date with respect to residential pre-sales (over 90% sold) and the letting of the entire office space in the power station Building (c470,000 sq ft) to Apple, PNB and EPF have expressed an interest in exploring the proposed transaction now.
“The proposed transaction, once completed, would provide increased certainty of investment return to SP Setia and Sime Darby Property as development partners earlier than would otherwise be the case,” they said.
The transaction would enable both parties to focus on securing the development profit and investment returns from the remaining development phases for three to seven of the Battersea Power Station project which is estimated to be completed in 2028.