LONDON, July 4 (Bernama) -â€" The Malaysian consortium developing the Battersea Power Station project has rejuvenated the United Kingdom property market with their level of activity, says Rob Tincknell, chief executive of Battersea Power Station Development Co.
While the first phase of the project development commanded an average price of 1,100 pounds sterling per sq ft, the second phase would see this escalate to 2,000 pounds sterling per sq ft, he said.
Speaking to Malaysian reporters visiting the site a day prior to its ground breaking by the Prime Ministers of Malaysia and Britain Thursday, he said the Malaysian developers comprising SP Setia Bhd, Sime Darby Bhd and Employees Provident Fund (EPF) had taken the property market by surprise.
He said their combined expertise, financial strength and commitment had caused a lot to be achieved in the 10 months since they bought for 400 million pounds sterling the 39-acre property, a power station that had been vacant for the last 30 years, to be redeveloped into 3,500 homes, offices, shops and a park.
He said the Battersea project would help raise the value of surrounding developments, saying that a nearby 1.5 acre area had recently been offered for 104 million pounds.
Battersea is part of the bigger Nine Elms regeneration area, the last remaining under-utilised part of central London stretching from Chelsea Bridge in the west to Vauxhall Bridge in the east, which will see the development of a new US embassy and also the extension of the Northern Line.
The first phase of the Battersea Power Station project, known as the Circus West development, had seen 96 per cent of its 866 apartments being snapped up, with foreigners comprising 55 per cent of the buyers and locals 45 per cent.
â€œWhen shareholders bought this site, two real estate agents here said that we would be doing well if we could sell between 200 to 300 units a year but we managed to sell 840 units in three weeks,â€ he added.
The project will be developed in eight phases in 10 years with a gross development value of 8 billion pounds, with the first phase to be ready in 2016 and the second phase in 2019.
The second phase, the development of the power station itself, will see works on the exterior starting later this year and the interior by next year.
With a development cost of 600 million pounds, the second phase comprises three floors of retail area, one floor for events and conventions, and six floors of offices as well as four blocks of apartments of less than 200 units overlooking a splendid view from the top of the iconic building which will retain much of its design structure.