Thursday, January 10, 2013

Malaysian consortium launches UK Battersea project, 1st phase GDV value RM4.5bil

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By EUGENE MAHALINGAM
eugenicz@thestar.com.my
Phase one launched: Battersea Power Station Development Co Ltd CEO Robert Tincknell indicating on the projected image where the first phase of the project will be carried out by the Battersea Power Station, S P Setia Bhd, Sime Darby Bhd and the Employees Provident Fund consortium at a media conference after it was launched in London.
LONDON: The Malaysian consortium comprising property developers SP Setia Bhd, Sime Darby Bhd and the Employees Provident Fund (EPF) have officially launched the first phase of its £8bil (RM40bil) Battersea Power Station project.
The first phase, which is named Circus West at Battersea Power Station, has a gross development value (GDV) of £900mil (RM4.5bil).
Battersea Power Station Development Co Ltd (BPSDC) chief executive officer Robert Tincknell, on behalf of the consortium, said he was “quietly optimistic” about the take-up for the residential units.
“We’re confident. There’s a lot of pent-up demand for these apartments, especially from Londoners,” he told Malaysian reporters prior to the launch of the first phase yesterday.
BPSDC is the company that is managing the Battersea Power Station project.
Tincknell said options to purchase would first be given to British buyers, before they were offered to selected countries within Asia.
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“We’ve allocated a number of units to certain markets but it will be flexible. We start in London and then we’ll be in Malaysia over the weekend.
“The following weekend we will be in Singapore and the week after that, we’ll be going to Hong Kong,” he said.
He said BPSDC was optimistic about interest from Malaysian buyers. “There’s a huge following in Malaysia,” said Tincknell.
The first phase of the project will comprise a mix of 800 units of one, two and three-bedroom apartments, townhouses and penthouses as well as a blend of offices, shops, leisure and hospitality units. Construction is expected to commence in the second half of this year.
Prices start from £338,000 for a studio, from £423,000 for a one-bedroom, from £613,000 for a two-bedroom and £894,000 for a three-bedroom apartment as well as from £6mil for the penthouse units.
Citing residential value growth projections by Knight Frank Research, he said residential units for Battersea Power Station was expected to record an average growth of 6% per annum.
The first phase of the Battersea Power Station project will consist of 990,000 sq ft of residential space and 110,000 sq ft of commercial space.
“We haven’t begun marketing the commercial space yet,” said Tincknell.
The first phase will also involve the refurbishment of the Battersea Power Station, which itself will take an estimated 18 months to complete.
“These would include the replacement of the power station’s four chimneys and strengthening of the work towers,” said Tincknell.
He said the refurbishment of the power station was expected to cost £60mil (RM300mil).
“Funding for the refurbishment is being secured,” he said, adding that the entire first phase was expected to be completed by 2017.
SP Setia, Sime Darby and the EPF purchased the 39.5-acre Battersea Power Station site for RM1.99bil in September last year.
Both SP Setia and Sime Darby have an equal stake of 40% each in the project, with the EPF holding the remaining 20%.
Tincknell said the entire project was expected to be developed over eight phases and should be completed within the next 14 to 15 years.
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