Battersea Power Station development secures RM4b financing

KUALA LUMPUR: The Malaysian consortium comprising SP Setia Bhd, Sime Darby Property and the Employees Provident Fund, have secured 790.2 million pounds (approximately RM4 billion) in development and land refinancing loan for the Battersea Power Station in the United Kingdom.

The facility was arranged with a group of international banks led by CIMB Bhd, as the coordinating mandated lead arranger and book runner, with OCBC, Standard Chartered and Malayan Banking Bhd as joint mandated arrangers.

"We're are delighted that our bankers, who have worked with us for many years in Malaysia, have come out so strongly to support our efforts to revitalise the Battersea Power station in the United Kingdom," said Battersea Project Holding Company Ltd Chairman Tan Sri Liew Kee Sin.

He was speaking at a loan signing ceremony here today witnessed by the Minister of Urban Wellbeing, Housing and Local Government Datuk Abdul Rahman Dahlan.

The financing is one of the largest real estate financing transaction for this year and comprises a 532 million pounds five-year development facility to support Phase 1 of the development and the refurbishment of the Power Station project over the next three-and-a-half years.

It also includes a 258.2 million pound land facility, which would be used to refinance the initial loan used to fund the acquisition of the site over a longer period of five years.
"We have assembled an outstanding team in the United Kingdom and Malaysia who have worked very well together to deliver amazing results.

"With the 790.2 million pound loan now secured, Battersea Power Station is set to re-emerge as a different type of powerhouse altogether," Liew said.

He added instead of coal-fired power it will have vibrant residential, commercial and entertainment offers to generate a new energetic, creative and cultural district for London, in keeping with its iconic status.

Meanwhile, CIMB Group Chief Executive Datuk Seri Nazir Razak, who was also present to witness the signing ceremony, said today's event was a historic syndication exercise, where Malaysian banks have stepped up to support a a Malaysian consortium in a massive development project in another country.

"The Battersea Power Station also happens to be a historic site by the Thames river, so this project would be transformative for London as a city too.

"I am glad that it is progressing extremely well with a near sell-out of Phase 1," he added.

The size and terms of the financing reflected the banks' confidence in both the shareholders and the project.
Phase 1 of Battersea Power Station, launched in January 2013, has since seen a 99 per cent take up of the residential units at an unprecedented rate of sales.

Named Circus West at Battersea Power Station, work started on Phase 1 in July after the award-winning British firm, Carillon, won the contract. 

The funding package would also support the refurbishment of the Power Station itself which represents Phase 2 of the project.
This includes the reconstruction of the chimneys to the original designs, which would began next year.

Design work has also begun for Phase 3, known as the High Street, which would be one of the most exciting areas of the Battersea Power Station developmen