“Many thought it would never happen but today is a triumphant moment in Battersea Power Station ’s rebirth as well as a glowing testimony to London’s attractiveness for global investors,” London mayor Boris Johnson told a VIP audience at the groundbreaking of Battersea Power Station this afternoon.
“Once the generator of megawatts, this iconic building’s revamp is now sparking the wider rejuvenation of a once neglected part of London into a vibrant new quarter. Thanks to a multi-billion pound public and private investment, which will include a brand new extension to the northern line, the transformation of this area is set to support tens of thousands of jobs and homes for the capital.”
It was 1983 when the first development brief for Battersea Power Station was issued.
A year later developer John Broome announced plans to turn the south London site into an amusement park. Four years later those plans are officially launched by then prime minister Margaret Thatcher. One year later, work is halted.
This begins a tale of stop starts for what is arguably one of the best and largest development sites in central London.
After Broome’s failed attempt, Hong Kong entrepreneur Victor Hwang swoops in and in 1993 buys Battersea Power Station . His firm Parkview International proposes film studios, theatres, residential and business space on the 38-acre site. Detailed plans get approved in 2000 and by 2003 enabling works have started.
But in 2004 Parkview submits revised plans for a 1.5m sq ft mixed-use retail and leisure scheme. Plans are approved in summer 2005.
After a year of little progress, Parkview starts holdings talks with potential partners and funders for the multi billion pound scheme. Irish developer Ballymore gets close to buying into the site with a £500m offer in 2006 but no deal comes to pass.
Later that year, as revealed by Estates Gazette, another Irish giant of the boom time, Treasury Holdings, makes its approach for the “upside-down table” and acquires the site from Parkview for £400m.
Treasury, or rather listed entity Real Estate Opportunities, draws up fresh new plans for Battersea. Enlisting the help of superstar architect Rafael Vinoly, it pulls together a new masterplan.
That plan proposes and 8m sq ft scheme comprising housing, offices, shops and an extension of the Northern Line. Among the dramatic proposals is a 980ft glass chimney that will ventilate 2.5m sq ft of offices at the £4bn scheme.
Those plans, of course, were revised and the chimney binned. And in 2009 a £5.5bn scheme comprising 3,700 homes, 1.6m sq ft of offices, 500,000 sq ft of shops and restaurants, plus a conference centre and hotel were submitted.
Between submitting plans and getting approval in 2010, Treasury put a stake in Battersea Power Station up for sale. But with most in the market thinking the price was too high for an unconsented scheme with not the greatest track record, sale failed to materialize.
Treasury’s plans for Battersea start to wane when, like many property investors that bought big in the boom time, it breaches covenants with its lenders.
In December 2011, banks Nama and Lloyds Banking Group call time on REO and place it into administration. Battersea Power Station officially comes to market in January 2012 through Knight Frank and in July that year is sold to Malaysian investors SP Setia, Sime Darby and EPF for £400m.
Finally progress starts to be made on the project. Some tweaks are made to its design, scores of flats at the development are pre-sold to overseas investors, and today, 30 years on from that first development brief, ground has finally been broken.
Cue prime minister David Cameron and his Malaysian counterpart Datuk Seri Najib Razak to mark the office start of building work on the now £8bn project.
Some 500 VIPs have been invited to hear keynote speeches from the Malaysian PM and London mayor Boris Johnson at a lunch at a pop-up park at the site.
The tour round the show flats in the first 866-home phase of the scheme will also be on offer.
Chairman of the shareholders’ consortium Tan Sri Liew said: “It is exactly one year since we first signed the sale contract for the acquisition of the site. To have achieved this result of not just launching Phase 1 of the development but having signed contracts with purchasers for over 97% of the available units is truly remarkable.
“It demonstrates the reputational strength of the consortium members and the depth of the real customer following we enjoy both at home, within Asia and increasingly in the United Kingdom.”
Rob Tincknell, chief executive of Battersea Power Station Development Company, added: “Eighty years since Battersea Power Station first produced electricity, and 30 years since it was decommissioned, construction works have started and the vision is becoming a reality. Redeveloping a site which is home to such an iconic building is a massive responsibility.”
The groundbreaking has been widely welcomed by stakeholders in the area keen to see the area – part of the Nine Elms Opportunity Area – developed.
Ravi Govinder, leader of Wandsworth council, said: “This project is lifting the fortunes of an entire district and will bring the tube to Battersea for the very first time. We are now watching this part of Battersea transform from London’s logistics centre to a new residential and businesses distinct with a revived power station at its heart.
“The new Nine Elms will be a fantastic new venue on London’s tourist map and a new engine for growth. We have already attracted more than £15bn of new investment to this part of the South Bank and there is no sign of it slowing down. Battersea has an incredibly exciting future.”
Samantha.McClary@estatesgazette.com
