Battersea plan secures first step in approval
Updated: 14:45, Friday, 12 November 2010
The Battersea power station in London, owned by Real Estate Opportunities, has received planning permission.
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The Battersea power station in London, owned by Real Estate Opportunities, has received planning permission from Wandsworth Council.
The approval is a major step in the regeneration of the largest undeveloped site in Central London. The next stage of the planning process will see it come before the Mayor of London and the Secretary of State for Communities and Local Government.
REO want to build a mixed-use sustainable development with over 3,400 new homes, along with substantial office space. The planned development will also feature hotels, cultural, and leisure facilities, conference centre, shops and restaurants.
The new development will also include a new tube station on the proposed extension of the Northern Line from Kennington to Nine Elms and Battersea power station.
The scheme is expected to create about 15,000 new jobs.
REO says it is confident in its ability to finance the project and says it has already attracted significant interest from a range of prospective investors.
Construction of phase one of the development is due to start in early 2012, with the project finished by 2016.
REO director Rob Tincknell said today the company still has to find a financial partner for the 10.1 million square-feet development, valued at Â£5.5 billion sterling.
'We are hopeful of having somebody (a finance partner) tied up for the earlier part of next year,' Tincknell said, adding REO was looking for a 50/50 partner for the project, either with an individual or a consortium.
He said REO had already spoken with many potential investors from around the globe, including sovereign wealth funds, private equity firms, wealthy families and property companies. Tincknell declined to name the would-be investors, or give their location.
Battersea's imposing white brick chimneys have been a feature of London's skyline for almost 80 years, but a series of owners have failed to renovate the building since it ceased power production nearly three decades ago.
A lot of very happy people in London talking about this today; this truely iconic building is in a scarred landscape surrounded by adjoining industrial plots such as a waste transfer station. Whether Treasury cash in to an Asian investor and make a significant profit or hang on as a major stake holder; London is the real winner after 20 years of false dawns for this site.
- PVC King