Wandsworth Gives Battersea Thumbs Up
Published on 15-11-2010 by Skyscrapernews.com
Wandsworth has given planning approval to the masterplan for the redevelopment of the iconic Battersea Power Station in London, along with the surrounding development that will feature a massive amount of new office space and homes.
This includes full renovation of the Power Station, 3,700 new homes, 150,000 square metres of office space, 50,000 square metres of retail, hotel and leisure space, plus a large amount of green space that is set to take up almost half the available 40-acres on the site. As far as the design goes, the next step will be to hire architects to individually hone each building in Rafael Viñoly's plans.
As one of the conditions to secure planning approval, Real Estate Opportunities has agreed to contribute £203 million to an extension of the London Underground Northern Line that will go from the existing Kennington Station via a new station at Nine Elms before terminating at Battersea. This sum is less than a third of the £663 million the extension has been budgeted at, but the contributions should grow as other developments also get approved in the area with similar, if smaller conditions.
One huge problem that stands in the way of the redevelopment of the scheme is the current state of the Irish economy. Developer, Real Estate Opportunities posted massive losses thanks to their exposure to the Irish housing market and the company is now worth only £16.27 million, and that's after the share price had doubled on the news. The liabilities of the company are reportedly £750 million more than its assets.
Nonetheless REO is seeking out a development partner to help fund the scheme. Prime London property has proven popular to foreign investors with projects like the Cheesegrater, Canary Wharf, Shard and Heron Tower all featuring extensive funding from abroad. Whether Battersea gets added to that list remains to be seen, but it is one of the few prestigious projects of its type left without a backer, and thus a rare opportunity.
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