Battersea profit seen at €9.7b amid rising construction cost — report

KUALA LUMPUR (Aug 14): The UK's Battersea Power Station project in London undertaken by Malaysian consortium SP Setia Bhd, Sime Darby Bhd and the Employees Provident Fund (EPF) is expected to make a €9.7 billion (about RM49.23 billion) profit when completed in 2025, amid rising construction cost, Irish Examiner reported today.

Quoting Battersea Power Station Development Co Ltd chief executive Rob Tincknell, Irish Examiner reported expenses for works involving the chimneys rose from €30 million to €53 million, while the price of the project’s energy centre quadrupled to €68 million.

Tincknell was quoted as saying: “We pretty much had to scrub the entire building with a toothbrush."

“That said, we set out to make Battersea a showcase for the world’s very best architects and the designs, and we are determined to create a genuine sense of place, and developing landmark buildings in which people are proud to make their home and work in, is vital to us achieving that aim,” Tincknell said.

Irish Examiner reported Treasury Holdings had initially controlled Battersea Power Station's estimated 16ha (40 acre) site, prior to Nama's takeover of Battersea Power Station.

It was reported that Nama had subsequently sold Battersea Power Station to the Malaysian consortium for €600 million.

Irish Examiner reported that when property experts in London predicted the development would generate profits of €9.7 billion when completed, Nama was accused of having sold “one of London’s biggest property gems too cheaply.” 

However, Nama chairman Frank Daly defended the decision: “We didn’t sell early, we sold at the right time. We sold that loan for €600 million, so we got back the full value of the loan.” — theedgemarkets.com

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