A Malaysian fund has agreed to buy a direct stake in London’s Battersea Power Station in move that values the building at £1.6bn.
Permodalan Nasional Berhad, the fund manager with £50bn of assets under management, will own the building jointly with Employees Provident Fund of Malaysia, which already owns a fifth of the wider Battersea development site.
PNB will buy its stake in the building from the Malaysian developers Sime Darby Property and SP Setia, which between them own 80 per cent of the 48 acre site. PNB, which is a majority stakeholder in both developers, already indirectly owns a large proportion of Battersea.
An undisclosed proportion of the expected full sale price for the iconic building will be paid to the two developers immediately, with the rest due on completion.
According to people familiar with the matter, the cash injection will allow the development of the building — which will host Apple’s new UK headquarters — to be completed amid rising costs.
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