This article first appeared in The Edge Financial Daily on March 15, 2019

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF) have completed their acquisition of commercial assets in Phase 2 of the Battersea Power Station development in London.

The acquisition, reported to be the UK’s most expensive, was done via PNB-Kwasa International 2 Ltd, a 65:35 joint venture (JV) between PNB and the EPF, for a total consideration of £1.58 billion (RM8.51 billion).

The deal was first mooted in January 2018, and the deadline to finalise it was revised from April 30 of that year to Sept 30, before being finally sealed on Dec 17.

With the completion of the exercise, the two institutional funds now have direct exposure to the commercial assets, previously held by Battersea Project Holding Co Ltd, which is owned by S P Setia Bhd (40%), Sime Darby Property Bhd (40%) and the EPF (20%).

PNB is a major shareholder in both S P Setia and Sime Darby Property. The EPF is also a substantial shareholder in both entities.

According to bourse filings yesterday by S P Setia and Sime Darby, the initial cash purchase price payable of £676.08 million has been settled by the purchasers, while the balance is payable in staged payments up to the practical completion of the Power Station building in its entirety.

S P Setia, in a statement, said the UK-based Battersea Power Station Development Co (BPSDC) will continue as the development, estate and asset manager for all phases of the overall development.

It has been reported that BPSDC will be the property manager post-completion for another 10 years.

The Battersea Power Station is scheduled for opening by late-2020. In the heart of the project — comprising seven phases — is the Power Station building, which accounts for some six acres (2.43ha) of the overall 42-acre regeneration site and is regarded as the jewel in the crown of the project.

“It is currently being restored and will, on completion from the end of 2020, become home to hundreds of shops, restaurants, cafes, event spaces and cinemas as well as new homes, Apple’s London campus and business members club, No18,” said the statement.

Commenting on the exercise, Battersea Project Holding chairman Datuk Ahmad Pardas Senin said: “We are delighted that this reorganisation has concluded, giving this iconic landmark a sound footing for the future and ensuring it is expertly curated and managed in the longer term.”

Separately, BPSDC chief executive officer Simon Murphy said: “Significant headway has already been made this year in terms of the restoration works which we would not have achieved without the support and guidance from our shareholders and stakeholders.

“We are excited by the prospect of the Power Station and surrounding area becoming a new, thriving London destination for future generations to enjoy,” added Murphy.