Battersea Power Station explores potential £2bn sale

Battersea Power Station’s Malaysian owners have reportedly approached advisors from BNP Paribas to explore interest from a "handful" of interested parties regarding a potential £2 billion sale.

The South West London retail and leisure destination, which offers a mix of high-end to more accessibly priced brands, including Chanel, Diptyque, Ralph Lauren, Penhaligon’s, Lululemon, Skechers, Space NK, ZARA and Uniqlo, also boasts flats valued at well over £1 million.

A Malaysian consortium including Permodalan Nasional Berhad (PNB), the Malaysian government’s investment fund, and the Employees’ Provident Fund (EPF), the country’s main pension fund, bought the derelict site out of administration in 2012 for £400 million, with a vision to make the power station something of a living, working, dining and shopping Mecca.

That goal was largely achieved, but to far greater cost than was ever envisaged. Following a 10-year project, the all-new Battersea Power Station opened to the public with much fanfare in October 2022.

Just over three years later, and with a dwindling London property market and much caution from retail businesses and consumers alike regarding the upcoming Budget, Battersea Power Station’s owners are reported to be sounding out what the site might bring them should they choose to cash in.

"What they’ve built so far is impressive. And now they’ve created that real-life vision, rather than just renders and plans and drawings, it can attract more value," a senior planning and development adviser who specialises in large-scale projects told The Telegraph.

In a statement, Permodalan Nasional Berhad (PNB) and Employees Provident Fund (EPF) told TheIndustry.fashion: "The Battersea project, owned by a consortium led by Sime Darby Property Berhad and S P Setia Berhad, remains a key strategic investment for its shareholders. The Battersea Power Station building, within the Battersea Power Station commercial precinct, is jointly owned by Permodalan Nasional Berhad (PNB) and the Employees Provident Fund (EPF), which was acquired as part of its investment portfolio in global real estate.

"Both organisations remain fully committed to realising the full potential of the investment and confident in its prospects and potential upside value. As such, there are no immediate plans to proceed with any exit. Given the iconic nature of the Battersea asset, we receive from time-to-time proposals from parties interested in investing in the project.

"As investors, PNB and EPF would evaluate any such proposals carefully in line with our investment criteria and considerations, which is always based on creating value for the benefit of our PNB unit holders and EPF members.

"As such, typically when investments reach maturity and achieve targeted returns, we would consider the opportunities for monetisation or the introduction of strategic partners to support future capital requirements and growth."