24 October 2014

Integrated project’s GDV hits £10b

  24 October 2014

BATTERSEA Project Holding Co Ltd (BPHC) chairman Tan Sri Liew Kee Sin said the gross development value (GDV) of the Battersea Power Station regeneration project has reached £10 billion (RM52.6 billion), which is 25 per cent more than the initial estimate in 2012.

Liew expects the project’s GDV to keep rising as the products are value added and property prices in the British capital keep increasing.

“The £10 billion is a minimum estimate. We are selling for much higher than we expected. The key selling point for this project is the total integration of a development unseen before in London. It is also, by far, the biggest regeneration project in the whole of Europe. This is a global project for the world market,” Liew said.

SP Setia Bhd, Sime Darby Bhd (with 40 per cent stakes each) and the Employees Provident Fund (20 per cent), are developing the project.

“At Battersea, we do things that are extraordinary. It will be the most complete development and will have everything, including business and four-star hotels, affordable and luxury apartments, retail, restaurants, cafes and bars, shops, schools, a spa and wellness centre, a specialist medical centre, a high-end education and art centre and a Malaysian Square.

“We are very excited about the Malaysian Square. Our prime minister will unveil this signature development at the appropriate time,” Liew said.

The consortium has secured up to £2.14 billion in financing for Phase 1, 2 and 3 of the iconic redevelopment. About £1.35 billion was secured recently from several banks for Phase 2 and 3, ahead of a roadshow in 13 countries.

BPHC is gearing up for its first global simultaneous launch this week. The company will visit 13 cities in 11 countries to find the most exciting global brands, businesses, restaurants and cafes to bring to the Battersea project.

The global tour will also see the launch of Phase 3A apartments comprising 539 units designed by Gehry Partners and Foster + Partners. The apartments range from studio units and four-bedroom town houses to limited penthouse units with prices starting from £2,000 per square feet (psf).

Liew expects 80 per cent of the units to be reserved within the first three weeks of the global launch.

He said Phase 3A would be one of the most exciting components of the project as it would be anchored by a retail pedestrian high street, to be known as The Electric Boulevard, which will be the gateway to the entire development and the new Northern Line extension.

In addition to roof gardens, Phase 3 will also include plans for the 0.45ha Prospect Park, a communal park for residents and the public designed by Gehry Partners. The park will link Battersea Power Station to the planned £620 million US embassy in Vauxhall, and will include a children’s play area and a 1,900 sqm community hub building.

BPHC has so far launched two phases of the Battersea project. Phase 1, known as Circus West, comprises 866 houses and were sold at more than £1,100 psf. The apartments, built among 110,000 sq ft of retail and leisure units, saw a more than 95 per cent take-up rate within weeks of its launch early last year. Only five penthouses, each worth more than £20 million, are available.

Liew expects the penthouses to be sold when Phase 1 nears completion.

Phase 2, known as the Power Station, which will include the restoration of the Grade II-listed building, saw a 90 per cent take-up rate for the 254 units offered during the launch in the second quarter of this year, with the selling price at more than £2,300 psf.



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