Malaysian investors are spending £1.6bn on acquiring commercial assets at London’s Battersea Power Station development.
Pemodalan Nasional Bhd, Malaysia’s largest asset management company, and the state pension fund Employees Provident Fund EPF are making the investment due to be finalised in early 2019. EPF are already part of the UK-Malaysian consortium behind the scheme.
The assets are mainly commercial office accommodation plus retail space in phase 2 of the scheme which is due for completion in 2020. Apple are due to move into some of the space in 2021, although it has recently been suggested it may not now be ready in time.
Battersea Power Station must rank as one of London’s longest-drawn-out property development projects. There have been numerous ambitious proposals to redevelop the site since it closed as a power station in 1983 and it has recently been suggested that the estimated costs of the current scheme could double to £1.5bn. Observers will be wondering, therefore, whether this latest investment is a sign of confidence in the London market, or some much-needed refinancing.