FINANCE: The developers behind Battersea Power Station have secured £1.35bn of funding to finance the third phase of the £8bn scheme.
The consortium, which includes SP Setia, Sime Darby and Employees’ Provident Fund, has secured a £750m facility to fund the development of the power station building.
Alongside this they have lined up a £600m facility to fund the development of London’s newest pedestrian high street, Electric Boulevard, at the 42-acre site.
CIMB, Maybank and Standard Chartered Bank acted as mandated lead arrangers, bookrunners and joint co-ordinators of the facility.
DBS, NBAD, OCBC and RHB are participating as primary syndicate members.
The Foster + Partners and Gehry Partners-designed third phase of the project includes Electric Boulevard, stretching from Battersea Park Road to the power station, entrances to a new Zone 1 station on the extended Northern Line underground service and 1,305 new homes. It also includes a 160-bedroom hotel and 350,000 sq ft of shops and restaurant space.
The latest round of funding comes after Battersea Power Station Development Company agreed £790.2m of syndicated development and land financing facilities for the first phase last November.
This comprises a £532m five-year development facility to support the first phase of the development and the refurbishment of the power station itself over the next three-and-a-half years.
It also included a £258.2m land facility that refinances the initial loan used to fund the acquisition of the site onto a longer period of five years.
The facilities were arranged with a group of international banks, including, in senior syndicate positions, CIMB, OCBC, Standard Chartered and Maybank. SP Setia, Sime Darby and Employees’ Provident Fund have committed up to £1bn of equity finance to the overall development.
Refurbishment work on the power station, including replacement of the chimneys, is progressing well.
Main construction work on the power station will commence in Q1 2015, at the same time as the start of construction on the Northern Line extension.
Tan Sri Liew Kee Sin, chairman of Battersea Power Station, said: “These latest financing agreements are a further significant step in the development of Battersea Power Station, in bringing the iconic building back into public use after 30 years and in constructing the extraordinary buildings in phase three designed by world-leading architects. Furthermore, these agreements will support the creation of jobs, affordable housing and enhanced transport within London.
“The agreements are also a demonstration of the strength of the relationship between the shareholders of Battersea Power Station and the lenders and we thank them for their support.”
Norton Rose Fulbright LLP provided legal advice to the borrowers and Baker & McKenzie, Wong & Leow provided legal advice to the lenders.
