Battersea Update:

Following our blog post in December of last year reporting on the difficulties faced by REO, the owners of Battersea Power Station the administrators and receivers Ernst & Young have made a significant announcement today.

Malaysian investors SP Setia and Sime Darby Property have been confirmed this morning as the preferred bidders for the 38 acre site of the old power station in south London.

An exclusivity agreement has been entered into with the Ernst & Young, with a 28 day window to conduct due diligence investigations and contract negotiations prior to going ahead with the purchase of the site for £400m.

SP Setia and Sime Darby Property said that their plans “involve the development of a sustainable multi use real estate regeneration project that will provide economic impetus for the creation of a new vibrant centre for south-west central London”.

They have indicated that they will preserve much of the façade and the iconic chimneys and have also committed to construct a new underground station, forming part of the extended Northern Line.  This move is a key initiative in the success of the regeneration project.

There is much wailing and gnashing of teeth from Chelsea supporters this morning as Mr Abramovich and Co were also thought to be in the running for a shot at redeveloping the site.  They may be off for an early bath, but you never know, things can always change!