The future of Battersea Power Station is once again uncertain as rumors of its potential sale swirl around its distinctive four chimneys.
Current custodians, Real Estate Opportunities, had been looking to finance a £5.5bn regeneration plan by selling a 50 per cent share in the site, which has remained empty since 1983. The developers paid £400m for the South London landmark in 2006. Four years later planning permission to redevelop the site for residential and commercial property use was awarded. Since then there has been no further movement.
Investors, among them Lloyds Banking Group who have a £260m stake, are now keen to see a return on their money. A reported £400m of debt secured on the project is set to mature at the end of August. Banks have now brought in accountants Ernst & Young to evaluate and manage any potential transaction.
Battersea Power Station has certainly had more than its fair share of proposals over the years. In 1987, Alton Towers Ltd received the go-ahead to build a theme park to go with its eponymous Staffordshire destination. Initial projected costs of £35m swelled to £230m, and the construction eventually halted in 1989. Unfortunately at this stage the roof had been removed, which meant any future commercial property development would have to deal with foundations at regular risk of flooding.
One year later undeterred developers submitted a revised plan, comprising offices, shops and other commercial property developments. Permission was granted despite fierce objections from English Heritage (EH), which cited the building’s Grade II status as a reason for blocking the move. EH regularly advises the government on preservation of British cultural and historic buildings and was recently in the news for an unsuccessful attempt to block a very high profile commercial property construction in the City of London.
Three years passed and ownership of the still-undeveloped station changed hands again. A protracted sale began in 1996 and concluded in 2003 when Hong Kong development company Parkview International began a £1.1bn programme. Dubbed ‘The Power Plan’, it was to incorporate a shopping centre, restaurants, cafes, entertainment venues and other commercial property opportunities.
In 2005, the local council claimed that the iconic four chimneys surrounding the site were damaged and beyond repair. After further reports were commissioned, current owners REO acquired the site in 2006. Since then there has been no further development, so what now?
The Irish National Asset Management Agency (NAMA) has a financial interest in the site. Tasked with disposing of some of Ireland’s ‘toxic’ commercial property debt, the agency is said to be ‘currently supporting this process’ of inviting bids.
Offers for the 50 per cent share are rumoured to be in the air, but the option of selling the entire site and retaining a share in future profits has not been ruled out.
If no commercial property progress is forthcoming, maybe the building can use its show business contacts. It has had a few cultural cameos, featuring on Pink Floyd’s Animals album and appearing in the Beatles’ movie Help! After the helter-skelter of the past few years, perhaps some Help is needed, together with some Money (That’s What I Want).
