The two funds entered into a Head of Terms to with Battersea Phase 2 Holding Company, a wholly-owned unit of Battersea Project Holding Co Ltd which is, in turn, a 40 per cent associated company of SP Setia Bhd to explore the terms of the potential sale, SP Setia said in a media statement today.
The assets will be sold to a joint venture company to be formed between PNB and EPF, it said.
The property developer said with the residential pre-sales of over 90 per cent and the entire 470,000 sq ft of office space in the Battersea Power Station building let out to Apple, the expressions of interest from PNB and EPF to be long-term asset holders in Battersea Power Station project were timely.
“The proposed transaction, once completed, would augur well with our business plans as it will enhance our investment returns and allow SP Setia to capitalise on arising opportunities as a property developer while continuing to play a significant role in the overall development of the project.
“It will also enable us to focus on securing the development´s profit and investment returns from the remaining development phases in the Battersea Power Station project, ” said SP Setia.
It said the proposed transaction demonstrated the strong direct commitment by the ultimate institutional shareholders in the project.
Shareholdings in Battersea Project Holding Co Ltd would remain unchanged between Sime Darby Property Berhad, SP Setia and EPF.
SP Setia said it remains committed to, and is positive on, the long-term prospects of the Battersea Power Station project.
Phase 1 (known as Circus West Village) which consisted of 12 residential blocks and 100,000 sq ft of high-quality restaurants, shops, offices and leisure accommodation has been completed and handed over to the purchasers and tenants over the course of 2017.
The Battersea Power Station project covers 17 hectares and includes 3.5 million sq ft of mixed commercial space, together with 4,364 new homes. – Bernama