Battersea Power Station secures RM1.52bil refinancing for the next development phase

KUALA LUMPUR: Battersea Power Station Development Company (BPSDC) has secured a £280 million (RM1.52 billion) refinancing loan to fund the development of the remaining 6.47 hectares (ha) of its 17ha riverside neighbourhood in London.

The facility was secured from its longstanding lenders, CIMB, OCBC, Maybank and Standard Chartered, reflecting continued confidence in the project's progress, commercial maturity and future development potential.

BPSDC chief financial officer Chee Seng Siew said the refinancing demonstrated lenders' confidence in the project's long-term value despite a subdued property market.

He said against a quieter property market, the continued support from the lenders reflects confidence in the transformation achieved so far, from the restoration of the once derelict Grade II* listed Power Station to the creation of a thriving riverside neighbourhood, and the opportunity that lies ahead.

"Successful regeneration on the scale of Battersea Power Station depends on patient capital and a shared belief in the long-term value a place can create," he said in a statement.

The refinancing comes after the submission of a revised masterplan for the remaining undeveloped land, designed by urban design and landscape architecture firm Studio Egret West.

BPSDC said the proposed masterplan provides for up to 3.2 million sq ft of residential, commercial and leisure space, nearly doubling the scale of development delivered to date and completing the riverside neighbourhood.

Work is already underway on the next phase, Prospect Place South, with construction beginning in early September. Designed by Gehry Partners, the two buildings will deliver about 300 homes, 65,000 sq ft of commercial space for shops, cafes and restaurants, and a 15,000 sq ft Community Hub.

The development will also include a bicycle hub and complete the pedestrianised high street, Electric Boulevard.

Separately, planning permission has been granted for 200 council homes to be developed in partnership with Wandsworth Council under its Homes for Wandsworth programme. The homes, which will be built on Phase 5, will be offered to local residents, including families, at social rent levels, with construction expected to begin in early 2027.

The upcoming phases will build on the more than 2,200 homes, about 800,000 sq ft of office space and over 170 shops, bars, restaurants and leisure venues already delivered at Battersea Power Station.

"Following the submission of our revised masterplan for the future phases, the start of construction on Prospect Place South and securing planning approval for 200 high-quality council homes, this refinancing loan marks another important step for the regeneration of Battersea Power Station.

"It provides a firm financial foundation for developing the remaining 16 acres of land and creates sustained value for our shareholders and the wider neighbourhood," Chee said.

He thanked the lenders and shareholders S P Setia Bhd, Sime Darby Property Bhd and the Employees Provident Fund for their continued support as the project moves into its next phase.