Malaysian Battersea consortium gets £1.35 billion financing

Malaysian Battersea consortium gets £1.35 billion financing

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The Malaysian Battersea consortium has so far secured loans amounting to £2.09 billion.

In order to redevelop the 50 billion Malaysian Ringgit Battersea Power Station (BPS) project in London, the Malaysian Battersea consortium has obtained £1.35 billion in loans from various banks. The amount is the largest ever acquired for a property project in Malaysia and London.

 Malaysian Battersea consortium funding

Battersea Project Holding will go on a world tour of 13 cities in 11 countries from October 31, 2014 to attract buyers for Phase III of the project, including Paris, New York, Singapore, Shanghai, Dubai and Hong Kong. It will be launched on October 31, 2014.

The banks that would be involved in providing the loans include CIMB Group, Maybank, Standard Chartered, Oversea-Chinese Banking Corp as well as many other international banks.

Currently, two phases of the project are under development. The Battersea consortium comprise SP Setia Bhd, Sime Darby Bhd and the Employees Provident Fund.

The first phase, Circus West, sold 866 units, helping the consortium secure £790mil for the £8 billion project, while from the second phase, Power Station, 80 percent of the 254 units were sold to locals in London. About 70 percent of the phase one unit buyers were reported to be Asian, with 40 percent comprising Malaysians.

The third phase is reported to have a total of 1,200 units, and will be targeted at international buyers. 

The Battersea project is being developed in eight phases until 2025, covering 752,515 square metres of mixed development that will comprise shops, offices, restaurants and apartments.

While Phase I is expected to complete in mid 2016, Phase II will include the restoration of the power station. Phase III will feature homes designed by Gehry Partners and Foster and Partners, ranging from studios to four-bedroom townhouses and penthouses.

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