Making Battersea a global iconic story
Published on: Tuesday, October 21, 2014
KUALA LUMPUR: The developers of the Battersea Power Station project in London, Malaysia's biggest property venture overeas, are confident of recovering the land cost following the launch of the next phase.Battersea Project Holding Co Ltd (BPHC) chairman Tan Sri Liew Kee Sin said that the global launch of Battersea Power Station (BPS) phase 3 would enable the developer of the £8bil (RM42.2bil) project to recoup its land cost amounting to about £400mil (RM2.1bil).Phase 3A will be officially launched between Oct 31 and Nov 2 while 3B later on. Together, they have a cumulative gross development value (GDV) of about £2bil (RM10.5bil) comprising 1,200 apartment units and commercial space.
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"The simultaneous launch of phase three in 13 cities in 11 countries over three days beginning Oct 31 will globalise the brand," Liew told Starbiz in an interview. The entire phase will be completed to coincide with the opening of the Nine Elms underground station at the project site in 2019.In a previous interview, Liew said that BPS had the lowest land cost to GDV project he had ever done in his more than 20 years as an entreprenuer-cum-developer. There is also a possibility that its GDV will increase to £10bil (RM52.7bil). "This re-generation project in London is a golden opportunity for Malaysia," he said.The company bought the land in 2012 after the site was placed under administration in 2011. It was previously owned by Irish firm Real Estate Opportunities.When a Malaysian consortium led by S P Setia Bhd won the rights to develop the project, it came under some scrutiny for the implementation risk the job carried.
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The fear was that the project may face obstacles in its implementation, something that would impact its costing.The launch of phase three would also coincide with an Oct 28 signing of a £1.35bil (RM7.1bil) loan facility – the biggest to be raised in Malaysian-British real estate. This will be for the development of phases two and three.
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The banks involved are CIMB Group, Maybank, Standard Chartered, Oversea-Chinese Banking Corp and a number of international banks. Phase one involved a financing package of £790mil.The consortium involving S P Setia Bhd and Sime Darby Bhd – 40pc stake each – and the Employees Provident Fund with 20%, has also contributed £200mil towards the Northern Line extension and the building of a train station. This will be paid according to the progress of the development of the infrastructure, and about £100mil towards the refurbishment and restoration of the external facade of the four-chimney building.Liew rationalised that without this global launch, BPS will remain "a local iconic story".It was a matter of spending £3mil or £15mil to brand BPS but the result and effect would be immense, he said."We simply have to differentiate it from other projects…. We have to shift the focus from Chelsea (one of the most upmarket location in London) to BPS which is just 20 minutes away by foot, across the Chelsea Bridge," said Liew.He said this launch was not just about offering 539 apartment units designed by two world renowned architects – Frank Gehry and Sir Norman Foster – but to draw attention to 3.5 million sq ft of commercial leasing opportunities in over 250 retail and food and beverage (F&B) outlets, three hotels and 1.62 million sq ft of office space. "It is about creating a brand new community – not just a destination – south of the Thames," he said.Liew said the milestones he had created in property development in Malaysia was testimony to the fact that he did not do the ordinary. Hence, the BPS tagline – We don't do the ordinary."We want to tell the world that our commercial space is ready for leasing, that Battersea is ready for business, so please come and talk to us. We are looking for brands from everywhere."Liew said its three hotels would be different, with a 50-room boutique hotel in the power station itself, a four-star and a business class hotel. He said it was important to highlight this in order for hotel groups to make plans.As for the 539 apartment units, he said London buyers were expected to take up more than 50pc with an 80pc take-up rate within the first two weeks.Phase 3a will be launched at an average price of about £1,700 per sq ft. Phase one was sold for about £1,000–£1,100 per sq ft. Phase two, at about £2,300 per sq ft, comes with a premium because the residential units are located on top of the power station itself. Phase two is about 85% sold currently, said Liew.On how global volatility and London's high property prices will affect sales, Liew said Britain's economy was healthier than the European economy and that London continued to drive the British economy.Stay up-to-date by following Daily Express’s Telegram channel.
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