KUALA LUMPUR — Oct. 5, 2018: The deadline to finalise the preliminary negotiations for the sale of commercial assets in London’s Battersea power station Phase 2 to Permodalan Nasional Berhad (PNB) and the Employees Provident Fund (EPF) has been extended for the third time to the end of the year.
PNB, EPF and the vendor — Battersea Phase 2 Holding Company Limited (Battersea Phase 2 Holdco) – have mutually agreed to extend the exclusivity period to December 31 from September 30, said Sime Darby Property and SP Setia in filings with Bursa Malaysia today.
Battersea Phase 2 Holdco is wholly owned by Battersea Project Holding Company Limited, which in turn is owned by Sime Darby Property Berhad (40 per cent), SP Setia Berhad (40 per cent) and EPF (20 per cent).
Sime Darby Property and SP Setia said the parties had made significant progress towards finalising the transaction and expected to enter into the proposed transaction in the fourth quarter of this year.
Last January 18 PNB and EPF signed a heads of terms agreement with Battersea Phase 2 Holdco to initiate preliminary negotiations to buy the commercial assets for an estimated £1.61 billion (RM8.7 billion).
The purchase price is subject to further due diligence and on the basis that the development is completed and fully tenanted.
The two developers said further announcements would be made in relation to the status of the heads of terms, the proposed transaction and/or the execution of the transaction documents.
PNB and EPF view the proposed purchase as a strategic opportunity to secure ownership of unique and iconic real estate assets, which will be able to deliver sustainable income streams into the future to meet their respective income needs.
Sime Darby Property and SP Setia said the proposed transaction would provide increased certainty of investment return to the two companies earlier than would otherwise be the case as well as enabling them to focus on securing development profit and investment returns from the remaining development in the London project’s Phases 3 to 7. — Bernama