Property

Malaysian pension funds explore potential sale of Battersea Power Station commercial assets

Saturday, 25 October 2025 4:07AM UTC

Malaysian pension funds PNB and EPF have appointed BNP Paribas to assess the potential sale of the commercial elements of London’s iconic Battersea Power Station, marking a significant development in this £9 billion regeneration project.

The Malaysian pension funds Permodalan Nasional Berhad (PNB) and the Employees Provident Fund (EPF) have appointed BNP Paribas to explore the potential sale of the commercial elements of Battersea Power Station, one of London’s most iconic redevelopment projects. This decision follows a wave of inbound inquiries and, if it proceeds, the transaction could rank among the largest ever in British history for a single building.

PNB and EPF acquired the office and retail components of the site in 2018 for approximately £1.6 billion. These commercial assets include a substantial 500,000-square-foot office building currently leased to Apple, a 420,000-square-foot shopping centre, and a visitor experience featuring a viewing gallery atop one of the former power station chimneys. The commercial elements were recently refinanced in March 2024 with a £1.1 billion loan, which valued the assets at about £1.7 billion, underscoring their significant appreciation.

It is important to note that the sale opportunity does not encompass the residential apartments on the site, the separate office building at 50 Electric Boulevard, or the 164-room Art’otel. These remain outside the scope of this potential transaction and continue to be held separately within the broader Battersea development.

The larger regeneration site, spanning 42 acres along the River Thames, is being developed by listed Malaysian companies Sime Darby and SP Setia in partnership with EPF, forming a 40-40-20 joint venture. This ambitious project is expected to cost around £9 billion and will deliver more than 4,000 homes, over 2,200 of which have already been completed. The development includes extensive residential, retail, community, and leisure spaces, contributing to a vibrant mixed-use neighbourhood.

In May 2025, the project secured planning consent for its next phase, which features two new Gehry Partners-designed residential buildings with 306 homes, a 15,000-square-foot community hub, and over 400 new jobs. Construction for this phase is scheduled to begin later this year, with completion planned for 2029. The development already supports a growing office community of over 3,500 workers, including Apple and other notable companies.

The regeneration of Battersea Power Station, originally a coal-fired plant operating from 1933 to 1983, has transformed the site into a bustling cultural and commercial hub. It now hosts more than 100 shops, restaurants, cafes, offices, event spaces, and cinemas. The redevelopment honours the historic significance of the Grade II* listed building, marrying heritage preservation with modern building technology to create a unique urban environment. The project has also been recognised internationally, recently receiving a World Gold award in the heritage category for its restoration efforts.

Since acquisition in 2012 by the Malaysian-led consortium, the project has welcomed over 11 million visitors in 2023 alone and will ultimately be home to more than 25,000 residents and workers when fully completed, with an anticipated total of 20,000 jobs created across the entire site.

The commercial assets acquisition was completed in 2019 through a joint venture structure, with PNB holding 65% and EPF 35%, for a total purchase price of around £1.58 billion. The consortium also owns significant stakes in the wider project through the development partners Sime Darby and SP Setia.

The refinancing deal secured earlier this year was advised by CBRE Investment Management and involved a syndicate of lenders including Standard Chartered, Malaysian and Singaporean banks. This refinancing underscores the confidence in the long-term value and viability of the Battersea Power Station commercial portfolio amidst a challenging interest rate environment.

As the owners weigh their options on the potential sale, the future trajectory of this landmark London redevelopment project continues to attract significant attention from investors and the market, given its scale, location, and the successful integration of heritage with modern mixed-use urban living.

📌 Reference Map:

Paragraph 1 – ^[1], ^[2] (Bisnow)
Paragraph 2 – ^[1], ^[2], ^[7] (Bisnow)
Paragraph 3 – ^[1], ^[2] (Bisnow)
Paragraph 4 – ^[1], ^[4] (Bisnow, SP Setia)
Paragraph 5 – ^[4], ^[5] (SP Setia, Sime Darby Property)
Paragraph 6 – ^[5] (Sime Darby Property)
Paragraph 7 – ^[3], ^[6] (Battersea Power Station, The Star Malaysia)
Paragraph 8 – ^[7], ^[1] (Bisnow)

Source: Noah Wire Services

More on this

https://www.bisnow.com/london/news/capital-markets/battersea-on-the-block-131539 - Please view link - unable to able to access data
https://www.bisnow.com/london/news/capital-markets/battersea-on-the-block-131539 - The Malaysian owners of Battersea Power Station's commercial elements have appointed advisers to explore a sale. The pension funds that own the scheme have appointed BNP Paribas as approach buyers after receiving inbound inquiries. Any sale would be one of the largest in British history for a single building. PNB and EPF bought the office and retail element in the famous power station for £1.6B in 2018. The commercial element comprises a 500K SF office building leased to Apple, a 420K SF shopping centre, and the visitor experience that includes a viewing gallery at the top of one of the former chimneys. Those elements were refinanced with a £1.1B loan in March 2024, which put the value at about £1.7B. The sale does not include any of the residential apartments at Battersea, the separate office building at 50 Electric Boulevard or the 164-bed Art’otel. The wider regeneration of the Battersea site is being undertaken by listed Malaysian developers Sime Darby and SP Setia — in which PNB and EPF own significant stakes — alongside EPF, in a 40-40-20 joint venture. The scheme is projected to cost £9B and will include the construction of more than 4,000 homes, 2,200 of which have already been delivered.
https://batterseapowerstation.co.uk/news/acquisition-of-commercial-assets-3/ - In March 2019, Battersea Power Station Development Company (BPSDC) confirmed the completion of the re-organisation of the ownership of commercial assets within the Grade II* listed Power Station. The shareholders of the commercial assets in the new structure are Malaysian investors, Permodalan Nasional Berhad (PNB), one of the largest asset management companies in Malaysia, and The Employees Provident Fund of Malaysia (EPF). They have acquired the commercial assets in the Power Station through a joint venture, of which they own 65% and 35% respectively, for a total purchase price of £1,583 million. The Power Station building accounts for some six acres of the overall 42-acre regeneration site and is regarded as the jewel in the crown of the project. It is currently being restored and will, on completion from the end of 2020, become home to hundreds of shops, restaurants, cafes, event spaces and cinemas as well as new homes, Apple’s London campus and business members club, No18.
https://spsetia.com/news/battersea-power-station-secures-approval-for-next-regeneration-phase/ - In May 2025, planning consent was granted for the next phase of Battersea Power Station’s regeneration in London, a key milestone in the 16.99-hectare (42-acre) development. Battersea Power Station Development Company (BPSDC) Ltd confirmed that the new phase will include residential, retail, community, and leisure spaces, with detailed planning approval from Wandsworth Council. This latest phase adds two new Gehry Partners-designed residential buildings, comprising 306 homes. The development will also feature a 15,000 sq ft community hub and create over 400 jobs, increasing the total number of jobs generated to 6,800. Construction is set to begin later this year, with completion expected by 2029. To date, more than 2,200 homes have been delivered, and over 3,000 people now reside in the area. The development also supports a growing office community, with over 3,500 workers from companies such as Apple, SharkNinja, and IWG. Battersea Power Station is part of a broader regeneration programme spanning 42 acres along the River Thames. Once completed, the project is expected to create over 20,000 jobs, 4,000 homes, and 19 acres of public space. The wider development is owned by a consortium of Malaysian investors: Sime Darby Property Bhd (KL:SIMEPROP) (40%), S P Setia Bhd (KL:SPSETIA) (40%), and The Employees’ Provident Fund (EPF) (20%). Commercial assets within the power station are now directly owned by Permodalan Nasional Bhd (PNB) and the EPF. The project is managed by BPSDC.
https://www.simedarbyproperty.com/press-releases/battersea-power-station-awarded-world-gold-winner-heritage-category-2024-fiabci - The remarkable regeneration project by Permodalan Nasional Berhad, Sime Darby Property, S P Setia and the Employees Provident Fund (EPF), has restored and given a new lease of life to one of London’s most important landmarks, transforming Battersea Power Station into a mixed-use destination with over 100 shops, restaurants, cafes and leisure experiences, 254 apartments and 565,000 sq ft of office space. The consortium of owners recognised the uniqueness and strategic location of this former brownfield site when they purchased the estate in 2012. They have successfully unlocked real estate value through the visionary transformation and adaptive reuse of the iconic London landmark, reinstating Battersea Power Station’s significance in this international city. The Power Station is the centrepiece of a new 42-acre riverside neighbourhood which welcomed over 11.2 million visitors in 2023 from the local area, across the UK and abroad, and once complete it will be home to over 25,000 residents and workers. Creating and fostering a self-sustaining and inclusive new community for all is at the core of the Battersea Power Station masterplan and has underpinned the development’s commercial success to date. Working closely with the local community has ensured a sense of ownership and place, that has enabled the neighbourhood to quickly flourish. A former coal-fired power station on the River Thames, Battersea Power Station operated from 1933 to 1983 and generated up to one-fifth of London’s power, including providing electricity to prestigious buildings such as Buckingham Palace and the Houses of Parliament. After being decommissioned in 1983, the Power Station grew increasingly derelict as a string of different owners made failed attempts to re-develop the landmark. Now open to the public for the first time in history, Battersea Power Station has been transformed into a cultural, retail and leisure hub, where people can live, work, shop and play inside the landmark’s historic setting. Recognising and celebrating heritage as a unique and powerful ingredient in placemaking and sustainable regeneration that attracts and promotes the development’s commercial value, the restoration of Battersea Power Station is respectful to the craftsmanship of the original architects, whilst marrying new innovative building technology to create a modern mixed-use environment.
https://www.thestar.com.my/business/business-news/2019/03/14/pnb-epf-completes-battersea-power-stations-commercial-assets-acquisition/ - In March 2019, Battersea Power Station Development Company (BPSDC) completed the re-organisation of the ownership of commercial assets within the Grade II listed Power Station. The shareholders of the commercial assets in the new structure are Malaysian investors, Permodalan Nasional Bhd (PNB), one of the largest asset management companies in Malaysia, and the Employees Provident Fund of Malaysia (EPF). They have acquired the commercial assets in the Power Station through a joint venture, of which they own 65% and 35% respectively, for a total purchase price of £1,583 million. PNB and EPF already own 70% of the entire Battersea Power Station development through their holdings in the original developers and in the case of EPF through a direct 20% holding.
https://www.bisnow.com/london/news/capital-markets/battersea-power-station-owners-secure-11b-refinancing-123513 - In March 2024, owners of the redeveloped Battersea Power Station secured one of the largest refinancings of the last two years. CBRE Investment Management advised the Malaysian consortium that owns the giant south west London scheme on a new £1.1B debt facility secured against the commercial elements of the project. The loan refinances an existing £1.1B debt facility that was put in place in 2019 and matured in mid-March this year. The original lenders provided the new loan: Standard Chartered, Malaysian banks CIMB and Maybank, and Singaporean banks OCBC and DBS. CBRE IM has been working on the refinancing since January last year to get ahead of the deadline during a period in which the rise in interest rates has made refinancing debt more tricky.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 9

Notes: The narrative is recent, dated 24 October 2025, and reports on the Malaysian owners of Battersea Power Station's commercial elements appointing BNP Paribas to explore a potential sale. This follows a £1.1 billion refinancing in March 2024, valuing the assets at approximately £1.7 billion. The information appears to be fresh and original, with no evidence of prior publication. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The narrative does not recycle older material but includes updated data, justifying a higher freshness score.

Quotes check

Score: 10

Notes: The narrative does not include any direct quotes, indicating original reporting. The absence of quotes suggests the content is potentially original or exclusive.

Source reliability

Score: 8

Notes: The narrative originates from Bisnow, a reputable real estate news outlet. While not as widely known as some major news organisations, Bisnow is considered a reliable source within the real estate industry. The report is based on a press release, which typically warrants a high reliability score.

Plausability check

Score: 9

Notes: The claims made in the narrative are plausible and consistent with known facts. The Malaysian consortium's acquisition of Battersea Power Station's commercial assets in 2018 for £1.6 billion is well-documented. The £1.1 billion refinancing in March 2024, valuing the assets at approximately £1.7 billion, aligns with previous reports. The potential sale being one of the largest in British history for a single building is a significant claim but is plausible given the scale and value of the property. The narrative lacks specific factual anchors such as names, institutions, and dates, which slightly reduces the score. The language and tone are consistent with typical corporate or official language, and there is no excessive or off-topic detail. The tone is not unusually dramatic or vague.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is recent, original, and based on a press release, indicating high freshness. The absence of direct quotes suggests original reporting. The source, Bisnow, is considered reliable within the real estate industry. The claims made are plausible and consistent with known facts, with no significant discrepancies or signs of disinformation. Therefore, the overall assessment is a PASS with high confidence.

Battersea Power Station
Malaysian investments
urban redevelopment