KUALA LUMPUR: Malaysia-owned Battersea Power Station new town centre development is expected to become one of London’s prime tourists sites after seeing a 36 per cent capital appreciation for units offered under its first phase.
Battersea Power Station Development Company Ltd (BPSDC) international sales director Philip Mason said the sharp increase in value of Phase 1, known as Circus West Village, was expected to attract more interest for residential and commercial units under Phase Two and beyond.
Mason said the overall Battersea Power Station project with a gross development value of £9 billion on 42 acres would be a huge boost for property investment in London once the Phase 2 opens in 2021.
Phase 2 houses the biggest brick building (power station) in Europe with over six million bricks including the iconic structure of the four chimneys.
It is expected that when it opens, 40 million people will visit Battersea Power Station annually.
BPSDC, the project development manager, is creating a new town centre for London, allowing people to collectively live, work, shop and dine under the same roof.
“Besides the iconic building, there is always a reason for everyone to come here. The Northern Line Extension (Battersea Power Station) will be a boon to attract more investors and visitors, giving accessibility to the two hubs of the London city - financial and the cultural districts,” Mason said at a media briefing on the project's Phase 3A project here on Thursday.
The extension line is a partially funded by SP Setia Bhd and Sime Darby Property Bhd, which contribute £211 million to its construction.
Sime Darby Property and SP Setia each own a 40 per cent stake in the Battersea Power Station development. The remaining 20 per cent is held by the Employees Provident Fund (EPF).
Mason said the project would be a huge boost for property investment in London, providing an opportunity for investors to take advantage on depreciation of the British pound sterling.
The UK is preparing its withdrawal from the European Union (EU) by October 31 after extending its earlier deadline of March 29 this year.
“London is never going to be cheap. Those who wanted to invest, better do it now. A lot of people from overseas have already started investing in London,” he added.
Mason said London would still remain attractive place for investors globally due to its higher capital returns for the property sector.
“There is a huge amount of interest for people coming to the power station. There is something for everyone. For example, we have cinema, restaurants, retail outlets, hotel,” he added.
The whole redevelopment of Battersea Power Station will comprise eight phases with over 4,000 residential units.
Mason said the main power station structure would require new 1.8 million bricks for the restoration work, which would be sourced from its original supplier, Northcot Bricks.
“We have also procured about £10 million worth of building materials from Malaysian suppliers including tiles and timber flooring as well as electrical equipment for Phase 1 and 2,” he added.
The fully-occupied Phase 1, which was opened in the first-quarter of 2017, consisted of 11 blocks of apartments with over 865 units housing more than 1,000 residents.
Phase 2, which has received about 90 per cent take up rate, will be completed in stages beginning late 2020.
It has about 253 units of apartments including penthouses at the main power station building.
Among the anchor tenants for the commercial site in Phase 2 include Apple Inc, occupying 500,000 sq ft of the boiler house and the Swedish co-working company/business members club, No 18 to lease 40,000 sq ft of office space.
The EPF and Permodalan Nasional Bhd (PNB) had bought the commercial properties in Phase 2 for £1.6 billion last year, the biggest property deal in the UK.
The deal reportedly broke the £1.28 billion sale of the 'Walkie Talkie' skyscraper in London in 2017 by a Hong Kong firm.
For Phase 3A, also known as the Electric Boulevard, it will comprise 539 residential units with the main building, designed by Norman Foster and another three flower-inspired buildings by architect, Frank Gehry.
The mixed development of the Phase 3A will also be connected to the Battersea Power Station tube line, which will be opened in 2021.
With an average price of £1,700 per sq ft, BPSDC expects Phase 3A to be completed by 2021.
To date, it has secured about 70 per cent take up rate.
BPSDC has also signed a 15-year lease with Art’otel at the main building comprising 167 rooms.