The proposed £1.6bn sale of Battersea Power Station to a pair of Malaysian funds will be one of the largest property deal ever to take place in the UK.

The Battersea Power Station Development Company said the Grade II-listed power station, but not the land around it, will be sold to Permodalan Nasional Berhad and the Employees Provident Fund of Malaysia.

Between them, the pair already own a 70 per cent stake in the project to develop the power station and the 42 acres surrounding it, through their stakes in developers SP Setia and Sime Derby.

But today’s surprise announcement gives them direct ownership of the former power station, which is half way through being transformed into a mixed-use scheme including offices, shops and 250 new homes.

Largest deal ever

According to a ranking published by Cushman & Wakefield last year, the deal knocks the £1.3bn sale of the Walkie Talkie to Chinese investors last year off the top spot as the UK’s most expensive property transaction ever.

The £1.2bn sale of HSBC’s London headquarters to the Qatar Investment Authority in 2014 and last year’s £1.2bn sale of the Cheesegrater to Chinese buyers took the third and fourth spots.

However, the £1.7bn acquisition of the Broadgate Estate from Blackstone in 2013 and and £1.7bn of More London by St Martins, also in 2013, were both larger deals.

Significant progress

Today a spokesperson for the Battersea Power Station Development Company said: “The Malaysian shareholders purchased the site in September 2012 and have since made significant progress including the successful completion of the first phase of the development which is now home to over 1,000 residents and a collection of independent retailers and restaurateurs.

“The proposed transaction reflects the shareholders’ long-term commitment to Battersea and London.”

Article Credited to City AM