KUALA LUMPUR (Dec 17): Permodalan Nasional Bhd (PNB) president and group chief executive Datuk Abdul Rahman Ahmad said today the proposed acquisition of the Battersea Power Station phase 2 commercial properties for £1.583 billion (approximately RM8.351 billion) by PNB and the Employees Provident Fund (EPF) enables PNB to consolidate its strategic ownership in the iconic and prime, central London development in the UK.

In a joint statement by PNB and the EPF, Abdul Rahman said the acquisition of the properties is expected to deliver a sustainable income stream and potential capital appreciation in the future.

"The proposed investment has also been carefully structured to ensure the proposed transaction meets the stringent investment criteria of PNB," he said.

According to him, PNB has undertaken extensive due diligence to evaluate the acquisition, which involved multiple advisers and technical experts. He said PNB is satisfied that the acquisition fits PNB's and EPF's investment strategy.

In the statement, PNB and the EPF announced that both organisations had signed an agreement on Friday (Dec 14, 2018) to jointly acquire the commercial properties in phase 2 of the Battersea Power Station development from Battersea Phase 2 Holding Co Ltd.

PNB and the EPF said the agreement concluded the negotiations, which began in January this year, for the purchase of the commercial properties. Today, PNB and the EPF said PNB-Kwasa International 2 Ltd, a special purpose vehicle (SPV) formed to undertake the acquisition, has conditionally agreed to acquire the properties from Battersea Phase 2 Holding.

PNB has a 65% stake in the SPV, while the remaining 35% is held by the EPF, according to the statement.

Meanwhile, Battersea Phase 2 Holding is a wholly-owned subsidiary of Battersea Project Holding Co Ltd, which is owned by a consortium of shareholders, namely S P Setia Bhd (40%), Sime Darby Property Bhd (40%) and the EPF (20%), according to the statement.

EPF deputy chief executive officer (investment) Datuk Mohamad Nasir Ab Latif said in the statement: "The EPF is committed to seeing through the completion of the Battersea project. As an integrated development backed by strong tenants, we are confident in the potential of the Phase 2 commercial property to yield sustainable and long term rental income for the EPF."

"We also anticipate the development to benefit from the extension of the London Underground Northern Line, which will provide greater accessibility to rejuvenate the area into a vibrant business and lifestyle epicentre," Mohamad Nasir said.