It seems the Power Station is to be sold for a total of £1.6 billion it was announced this morning on the Malaysian stock exchange.
The spiralling cost of restoration has threatened the future of London’s flagship regeneration project recently and this deal seems set to secure its future.
The sale makes the Grade II listed former generator the most expensive building ever to change hands in Britain,costing even more than the £1.3 billion paid for the “Walkie Talkie” City skyscraper last year.
The complex transaction will see ownership of only the Power Station building transferred. Not the surrounding 42 acres of land. It goes from the Malaysian consortium that owns the development company to two huge Malaysian government-backed investors.
The surprise move comes after the costs of transforming the crumbling riverside brick structure into an office, shops and apartments complex — including Apple’s new London HQ — doubled from an initial forecast of about £750 million to around £1.5 billion.
The cost of stripping out far more asbestos than expected, combined with soaring constructions costs — much related to chronic shortages of skilled workers — fuelled the cost overruns, with profit projections having being reduced from 20 per cent down to 8.2 percent.
A spokesman for the Battersea Power Station Development Company said: “This announcement is a tremendous show of faith and means that this iconic London landmark will be maintained for future generations to enjoy long after its restoration is complete.”
The site developers insisted that the sale would put the future of the world’s most famous industrial building on a secure long-term financial footing, and guarantee that its restoration is completed.