Battersea Power Station secures £280m refinancing for next 16-acre phase

Battersea Power Station Development Company has secured a £280 million (RM1.51 billion) refinancing loan from CIMB, OCBC, Maybank and Standard Chartered to fund the next phase of the London regeneration. The loan will support development of the remaining 16 acres, including new homes, commercial spa

PETALING JAYA (Oct 14): Battersea Power Station Development Company (BPSDC) has secured a £280 million (RM1.51 billion) refinancing loan from CIMB, OCBC, Maybank and Standard Chartered to support the development of the remaining 16 acres of the 42-acre Battersea Power Station riverside neighbourhood in London.

The regeneration project is backed by Malaysian shareholders S P Setia, Sime Darby Property and the Employees Provident Fund (EPF). In 2019, Permodalan Nasional Bhd (PNB) and EPF became the long-term owners of the commercial assets within the power station building.

In a statement on Tuesday (Oct 13), BPSDC said the refinancing would provide a financial foundation for the next phase of the mixed-use development, following the submission of a revised masterplan, the commencement of construction at Prospect Place South and planning approval for 200 council homes in partnership with Wandsworth Council.

The four banks are part of the project's core group of relationship lenders, which have supported the development since its inception. BPSDC said the refinancing reflected their confidence in the project's delivery record, commercial maturity and future development phases.

The revised masterplan, designed by Studio Egret West, proposes up to 3.2 million sq ft of residential, commercial and leisure space across the remaining 16 acres. According to BPSDC, the proposed development would nearly double the scale of development delivered to date and complete the riverside neighbourhood.

Construction of Prospect Place South began in early September. Designed by Gehry Partners, the phase comprises two buildings that will provide approximately 300 homes, 65,000 sq ft of commercial space for shops, cafés and restaurants, a 15,000 sq ft community hub and a bicycle hub. The development will also complete Electric Boulevard, the neighbourhood's pedestrianised high street.

Separately, planning permission has been granted for 200 council homes under Wandsworth Council's Homes for Wandsworth programme. The homes will be built in Phase 5 of the development and made available to local residents, including families, at social rent levels. Construction is expected to begin in early 2027.

The upcoming phases will build on the development's existing residential, commercial and retail components, which include more than 2,200 homes, approximately 800,000 sq ft of office space and over 170 shops, bars, restaurants and leisure venues.

BPSDC chief financial officer Chee Seng Siew said the refinancing reflected the lenders' continued support for the project amid a quieter property market. “Successful regeneration on the scale of Battersea Power Station depends on patient capital and a shared belief in the long-term value a place can create. Against a quieter property market, the continued support from our lenders reflects confidence in the transformation achieved so far, from the restoration of the once derelict Grade II* listed Power Station to the creation of a thriving riverside neighbourhood, and the opportunity that lies ahead,” he said.

Siew added that the refinancing marked another step towards delivering the remaining development phases. “It provides a firm financial foundation for developing the remaining 16 acres of land and creates sustained value for our shareholders and the wider neighbourhood,” he said.

Battersea Power Station has received more than £5 billion in investment from its Malaysian shareholders to date. The regeneration has restored the Grade II* listed power station, which stood derelict for decades, and established a mixed-use neighbourhood comprising residential, commercial, retail and leisure facilities. The power station reopened in 2022 and has since attracted more than 50 million visitors, according to BPSDC.