As long-time readers of REVITALIZATION know, the repurposing, renewal and reconnecting (to transit and surrounding neighborhoods) of the old Battersea Power Station is one of central London’s largest, most visionary and eagerly anticipated new town centers. As such, it’s a great example of the 3Re Strategy in action.
Roughly half of the redevelopment site will consist of shops, restaurants and office space. In addition, there will be a six-acre public park, a town square and a new tube (AKA: “subway” to Americans) station. The Battersea Power Station project covers 42 acres and includes 35,000 sq. ft. of mixed commercial space, together with 4239 new homes.
The successful regeneration of Battersea Power Station is expected to create 20,000 new jobs, inject £20 billion into the UK economy, and create a funding mechanism for the first major tube line extension since the Millennium. A new NHS medical facility is also being built.
Circus West Village is the first phase of the development that opened to the public and residents in 2017 and forms the heart of the neighborhood, providing a mix of new shops and restaurants, as well as an ongoing program of events that have been enjoyed by over two million people so far. A new MBNA Thames Clippers River Bus service also commenced in 2017.
The Battersea Academy of Skills Excellence (BASE), the development company’s bespoke jobs and training service created for those living locally, was launched in 2016. It is focused on matching people with jobs at Battersea as well as providing training relevant to the job pipeline at the development.
Now, on September 12, 2019 Battersea Power Station announced that it has successfully completed the financing of Phase 3 of the development, having secured a £600 million debt facility with the core group of relationship lenders who have supported the project since inception.
The monies will be used to fund the continued development of Phase 3 of the 42 acre regeneration site which comprises what will be London’s newest high street—Electric Boulevard—and mixed use buildings designed by Gehry Partners and Foster + Partners.
This financing demonstrates the ongoing financial support for the project and comes as huge progress continues to be made on transforming this area into one of London’s leading and most vibrant destinations.
The funding consortium includes Standard Chartered Bank as coordinating mandated lead arranger and bookrunner, CIMB, Maybank and OCBC as mandated lead arrangers and bookrunners, DBS as mandated lead arranger, and RHB as lead arranger.
Benn Zemek, CFO of Battersea Power Station Development Company, commented “This financing is a further significant step in the continued development of Battersea Power Station, allowing us to optimise the project’s capital structure. We especially would like to thank our shareholders S P Setia, Sime Darby Property and the Employees Provident Fund, for their instrumental role in supporting this transaction and ensuring a robust funding position for the project,”
The wider Battersea Power Station development is owned by a consortium of Malaysian investors comprising S P Setia (40%), Sime Darby Property (40%) and The Employees’ Provident Fund (20%), with the commercial assets within the Power Station building now being directly owned by Permodalan Nasional Berhad (PNB) and EPF.
Management of the development is being undertaken by the British-based Battersea Power Station Development Company.
Image courtesy of Battersea Power Station Development Company.