Battersea Power Station owners consider multi billion pound sale opportunity

The Malaysian owners of Battersea Power Station are weighing a potential sale of the iconic building, which market agents believe could achieve a price approaching £2 billion. Permodalan Nasional Berhad PNB and the Employees Provident Fund EPF Malaysia’s leading pension fund, have appointed advisers from BNP Paribas to field interest from prospective buyers.

Approaches have reportedly come from several interested parties, as first highlighted by Green Street News following BNP Paribas’s appointment. While the owners remain open to a transaction at the right price, there is no certainty that a sale will proceed. Engaging advisers to interact with interested investors is regarded as part of standard business operations at this scale.

The original purchase occurred in 2012 when EPF along with Malaysian developers Sime Darby Property and SP Setia acquired Battersea Power Station and the adjoining land out of administration. Since then, around £5 billion has been spent on the redevelopment programme, which includes restoring the grade II listed power station and building hundreds of flats, bars and restaurants across 42 acres.

This landmark reopened as a premium shopping destination in 2022 with Apple establishing its offices at the pinnacle the following year. Just before the pandemic, the trio sold the main building encompassing the shopping centre, Apple’s offices and the Chimney Lift attraction but excluding the flats above the turbine halls to a joint venture between EPF and PNB for roughly £1.6 billion. A refinancing last year placed the value of these commercial elements at about £1.7 billion, with agents suggesting the owners would now seek a higher valuation in a new deal.

The original consortium still retains control of all development outside the main structure. To date, approximately 2200 flats have been built including 253 situated above the main boiler house some with price tags exceeding £20 million. The overall project is only halfway completed with a decade of works likely ahead before its full realisation.

EPF, Sime Darby and SP Setia remain committed to the long term regeneration of the site, which has already transformed the fortunes of the area. Previous developers mulled replacing the power station with tourist attractions or even a football stadium, but the building itself had stood unused since operations ceased in 1983.