PNB expects to finalise talks to buy Battersea assets in 4Q
KUALA LUMPUR: Malaysia’s largest asset management firm, Permodalan Nasional Bhd ( PNB), expects talks to acquire commercial assets within London’s Battersea Power Station to complete in the fourth quarter of this year, its CEO said.
The ongoing talks are “positive” and the fund may seek another extension to continue the discussions, PNB CEO Abdul Rahman Ahmad said.
The government-linked fund, alongside state pension fund Employees Provident Fund (EPF), had in January proposed to buy the Power Station building within phase two of the development for a total of 1.608 billion pounds ( US$ 2.11 billion). The asset consists mainly of retail and office spaces.
Both funds first agreed last month to extend the period for talks until Sept. 30.
“We are still in the process of finalising the transaction, we are nearly completing our due diligence exercise. We would probably have better clarity in the fourth quarter,” Abdul Rahman told reporters at a briefing. Malaysian property firms SP Setia Bhd and Sime Darby Property Bhd as well as EPF acquired the decommissioned coal- fired power station in 2012 through a competitive bid, taking on the redevelopment of the iconic real estate due to be completed in 2020.
EPF directly owns 20 percent in the project through the consortium, while PNB is a majority shareholder in S P Setia and Sime Darby Property.
Built in the 1930s, the power station stopped operating in 1983 and gradually fell into disrepair. Multiple attempts to redevelop it fell through due to costs and practical difficulties in converting the gigantic site.
IPhone maker Apple Inc announced in 2016 plans to move its London headquarters to the power station in 2021.
However, Apple has been quietly making contingency plans in case construction is delayed, the Times reported last week.
PNB also said on Thursday it has grown its total asset under management by 7.3 per cent yearon-year to RM288.1 billion as at August 31.