Lloyds and Nama have rejected Malaysian investor SP Setia’s bid for Battersea Power Station, SW8.
SP Setia received a letter yesterday stating that Lloyds and Nama “do not intend to engage further on the preliminary offer at this stage”.
The investor submitted an offer on 18 November to acquire the senior debt facilities, the swap exposure and other related claims on the Battersea Power Station site and its holding company for £262m.
Capital & Counties and Chelsea Football Club are other parties known to have held talks over rescuing the £5.5bn south London development project.
The vehicle that owns the project, Battersea Power Station Shareholder Vehicle, needs to repay £230m of debt with Lloyds Banking Group, which expired earlier this year. As well as its loan with Lloyds, REO also has £475m of outstanding debt with Nama and an overall debt of £1.5bn.
SP Setia added: “We still firmly believe that property development prospects in London are positive. Accordingly the group will continue to look out for and assess other possibilities to invest, via strategic partnerships and landbanking opportunities, in this exciting market.”
joanna.bourke@estatesgazette.com
