Battersea power station has long been an iconic part of the London skyline. Yet since its decommission, the building has provided headaches for property developers looking to maximise its potential. Real Estate Opportunities is coming close to making progress…
Debt-laden property company Real Estate Opportunities has won a key red-tape battle in its quest to develop London’s Battersea Power Station, but has yet to finance the £5.5 billion project.
REO director Rob Tincknell recently said the company still has to find a financial partner for the 10.1 million square-feet development, and pass several other potential planning hurdles, after the project won planning consent from Wandsworth Council.
“We are hopeful of having somebody [a finance partner] tied up for the earlier part of next year,” Tincknell said, adding REO was looking for a 50/50 partner for the project, either with an individual or a consortium. He said REO had already spoken with many potential investors from around the globe, including sovereign wealth funds, private equity firms, wealthy families and property companies. Tincknell declined to name the would-be investors, or give their location.
“All of those potential investment parties have been anxiously awaiting the planning consent, and we are confident that is now in a form that will allow them to go to the next stage, get more stuck in to due diligence,” Tincknell said.
However, the reincarnation of Europe’s largest brick building as a residential, retail and office development has yet to be signed off by London Mayor Boris Johnson and Eric Pickles, the secretary of state for communities and local government.
“At the moment we’re forecasting a start [date for work on the development] in 2012 and completion in 2026,” Tincknell said in the conference call.