PNB, EPF keen to take over Phase 2 of Battersea Power Station for £1.6b

SHAH ALAM: Permodalan Nasional Bhd (PNB) and the Employees Provident Fund, (EPF) long-term investors in the Battersea Power Station project in London, have shown interest in taking over the commercial assets being developed by Battersea Phase 2 Holding Co Ltd for £1.61 billion (RM8.8 billion).

Yesterday, Sime Darby Property Bhd and SP Setia Bhd, both 40% interest holders in Battersea Phase 2, announced that Battersea Phase 2 Holding had entered into a heads of agreements with PNB and EPF to explore the terms of a potential sale on completion of the commercial assets currently being developed within Phase 2 of Battersea Power Station project, to a joint venture company to be formed between PNB and EPF.

Battersea Phase 2 Holding Co is a wholly owned subsidiary of Battersea Project Holding Co Ltd.

PNB and EPF expressed their interest to explore the transaction following strong progress made to date in Phase 2 with over 90% of residential units having been presold and the letting of the entire office space in the Power Station Building (about 470,000 sq ft) to Apple.

Sime Darby Property said in its statement the proposed transaction would provide increased certainty of investment return to Sime Darby Property and SP Setia as development partners earlier than would otherwise be the case, and enable both parties to focus on securing the development profit and investment returns from the remainder development in Phases 3 to 7 of the Battersea Power Station, which is estimated to be completed in 2028.

The shareholdings in Battersea Project Holding will remain unchanged between Sime Darby Property, SP Setia and EPF. SP Setia remains committed to and is positive on the long-term prospects of the Battersea Power Station project.