In order to fund the second and third phases (3A & 3B) of the Battersea Power Station redevelopment project in London, its developer has officially taken out a £1.35 billion loan from a consortium of bankers.
Touted as one of the biggest property financing transactions in the past few years, the loan comprises a £750 million facility for the redevelopment of the power station, and £600 million for the construction of a major retail street, consisting of blocks designed by Foster + Partners and Gehry Partners.
CIMB, Maybank and Standard Chartered will serve as book runners, lead arrangers and joint co-ordinators, while OCBC, DBS Bank, RHB Bank and Abu Dhabi’s National Bank will act as primary syndicate members.
“These latest financing agreements are a further significant step in the development of Battersea Power Station, in bringing the iconic building back into public use after 30 years and in constructing the extraordinary buildings in Phase 3 designed by world-leading architects,” said Battersea Power Station Chairman Tan Sri Liew Kee Sin.
On top of that, the loan agreements will bolster the creation of jobs and low-cost houses in London, as well as improve its transportation system, he added.
Meanwhile, the mega project’s Phase 3A is expected to be unveiled on Friday. If all the units under this stage are bought, the developer can completely pay off the £400 million loan used to purchase the land for the entire development.
As part of the launch on 31 October, the developer will tour 13 cities in 11 countries to market the units in Phase 3A, starting with London.
The objective of this tour is to woo renowned British and global brands to set up a presence within the iconic project. It is also an opportunity to buy 539 of the 1,305 houses designed by Gehry Partners and Foster + Partners, which are located in the city’s newest pedestrianised high street.
“It’s a fantastic opportunity, as 47 percent of retail brands around the world are not in London,” Battersea Power Station CEO Rob Tincknell told media reporters.
“The main construction work on the power station will commence in the first quarter of 2015 at the same time as the start of the construction of the Northern Line Extension, including the Zone 1 station at Battersea Power Station,” added the developer.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
