EPF, PNB say Battersea deal a strategic investment move

PETALING JAYA: Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) have jointly defended the decision to explore the potential acquisition of assets being developed within the phase two of the Battersea Power Station project in London.

In a statement, the funds reiterated that the decision to explore the potential reorganisation of ownership of the project was purely an investment consideration initiated by the Battersea Power Station board and management team, together with the EPF and PNB, and was undertaken independently without any Government intervention.

The purchase price, which is still subject to further due diligence, has been structured based on a completed and tenanted basis to provide attractive long-term yield for the investors, they added.

PNB and the EPF had on Thursday entered into a heads of terms to buy the commercial assets currently being developed within phase two of the Battersea Power Station project for £1.6bil (RM8.8bil).

Both funds had entered into a heads of terms with Battersea Phase 2 Holding Company Ltd, a unit of Battersea Project Holding Company Ltd, in which SP Setia Bhd and Sime Darby Property Bhd own a 40% stake each.

The proposed transaction is to reorganise the ownership of the Battersea Power Station’s commercial property under PNB and the EPF, who are long-term investors, while Sime Darby Property and SP Setia are principally property developers.

EPF and PNB added that the plans to buy the Power Station building in phase two of the project was driven solely by commercial motive. The Power Station building will house Apple’s new London headquarters.

The funds noted that they viewed this potential acquisition as a strategic opportunity to secure ownership of a unique and iconic real estate asset that would deliver a sustainable income stream.