A Treasury Holdings subsidiary has today confirmed its acquisition of Battersea Power Station, as revealed by Estates Gazette in September.
Real Estate Opportunities (REO) has this morning exchanged contracts to purchase Battersea Power Station and its surrounding lands in London from Oriental Property Limited, a company owned by the Hwang family, which also controls 100% of Parkview International, for £400m.
REO is buying 100% of the 38-acre site.
The acquisition of the massive development site will be funded by REO’s existing cash and £150m of debt from Bank of Scotland Corporate.
The transaction is conditional on the approval of REO’s ordinary shareholders and Treasury, which controls 58.5% of REO.
REO chairman Ray Horney said: “We are delighted to become involved in a project that presents both a magnificent property development opportunity and challenge: the Power Station itself is a building that is an iconic part of central London’s heritage and is set on a site which by virtue of its size and location offers an extraordinary development opportunity. No comparable site exists in London.”
Victor Hwang, director of Oriental and Parkview said: “Our first priority has always been to ensure that the regeneration of Battersea Power Station would be seen through to completion.
He added: “We have, over time, been in numerous discussions to seek a developer to continue with the project and to see this development through the construction phase to completion.
“It is right that the next phase and future of Battersea Power Station should now be transferred into a publicly listed company.
“This will assure that there is transparency and clear reporting requirements to the public, whose affection for this iconic building has never wavered.”
References: EGi News 30/11/06
