KUALA LUMPUR: Various catalytic activities are expected to sustain demand for properties in the £8 billion (RM43.90 billion) Battersea Power Station redevelopment in London, said Battersea Project Holding Co Ltd (BPHC) chairman Tan Sri Liew Kee Sin.

He said the property value in the London landmark will appreciate accordingly when every aspect that fosters perfect living conditions materialised.

“Once the commercial units, the parks, and more residential units are completed, Battersea Power Station’s value will appreciate further,” Liew said at a London property outlook forum hosted by BPHC on Saturday.

Liew cited the replacement of Battersea’s four iconic chimneys as an example, saying the London authority was initially not so confident about the work to dismantle and rebuild them. However, after BPHC successfully replaced the first chimney, the authority is now urging the company to expedite the replacement of the rest.

Eighteen months after the Battersea Power Station redevelopment’s groundbreaking in July last year, Liew noted that values of the properties in Phase 1 of the project have been “promising”.

On the uncertainties surrounding the UK May 2015 General Election, Liew said whether there will be tax reforms or not, the key is that investment in Battersea Power Station is a sound one.

He said the political system in the United Kingdom, which encourages administrative competitiveness, provides assurance that the nation’s development is closely monitored, especially in its capital, London.

On top of that, due to the recent downtrend in the ringgit, Liew is advising investors to use pound-denominated financing to take advantage of the currency’s fluctuation.

Investment management company Jones Lang LaSalle Ltd’s (JLL) head of residential research Adam Challis also said currency shift remains a factor in properties’ affordability in London.

He also noted that in the past three quarters of this year, price growth of central London properties is about 8.7%.

Moving forward, he expects growth to mature towards sustainable long-term rates, which could be in the 4% to 5.5% range until 2019.

“Although we can see that the supply is returning to ‘normal’ levels, it is still well below the long-run requirement,” Challis said.

Challis is of the view that the property market in London remains fundamentally well-supported, but more circumspect than before, mainly due to the uncertainties prior to the upcoming general election.

The Battersea Power Station project is owned by a consortium of Malaysian investors comprising S P Setia Bhd, Sime Darby Properties and the Employees’ Provident Fund. Prior to its redevelopment, the power station remained vacant since closing in 1983.

This article first appeared in The Edge Financial Daily, on December 15, 2014.