Saturday, 16 Nov 2024

Malaysia's PNB and EPF acquire Battersea commercial property for $2 billion

KUALA LUMPUR (Reuters) – Malaysia’s largest asset management firm Permodalan Nasional Bhd and state pension fund Employees Provident Fund (EPF) have agreed to jointly acquire the commercial assets at London’s Battersea Power Station for 1.58 billion pounds ($2 billion), both funds said on Monday.

The assets were acquired from a consortium made of Malaysian property developers S P Setia Bhd (SETI.KL) and Sime Darby Property Bhd (SIPR.KL), and EPF. Both funds own substantial holdings in the property developers.

The acquisition was targeted to be completed in the first quarter of 2019, the funds said in a joint statement.

The funds had in January proposed to buy the Power Station building within phase two of the development, which consists mainly of retail and office spaces.

Of the 540,000 sq ft (50,168 sq m) of Grade A offices, 500,000 sq ft has been leased to iPhone maker Apple Inc (AAPL.O) for its new London campus, the statement said.

Battersea Phase 2 is part of the restoration of the iconic Power Station building expected to be completed at the end of 2020 and open to the public in the following year.

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.

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