Monday, April 25, 2016

Transforming London skyline

By Sharen Kaur
Published in NST on April, 18, 2016

PETALING JAYA: THE changing face of the Battersea Power Station in London over the last three years, under development by a Malaysian consortium, is gaining worldwide attention and continues to cultivate investor and buying interest.
 
  Battersea is currently a top project in the United Kingdom and has proven to be the most popular in the world.
 
  So far, there have been three rounds of sales since January 2013 and more than 1,300 units have been sold with a total value of £1.8 billion (RM9.95 billion).
 
  The buyers were from Europe (including the UK), China, India, Hong Kong, Australia and Southeast Asia.
 
  Based on current estimates, the riverside project had a gross development value of £9 billion and would continue to develop for the next 10 to 15 years, said Battersea Power Station Development Co Ltd (BPSDC) chairman Datuk Jauhari Hamidi.
 
  BPSDC is owned by SP Setia Bhd (40 per cent stake), Sime Darby Bhd (40 per cent), and the Employees' Provident Fund (20 per cent).
 
  The consortium is turning the 17ha site into a huge complex featuring apartments, offices and retail outlets that will be constructed over seven phases.
 
  Once completed, 25,000 people are expected to live and work on the site, with an anticipated 40 million visitors each year.
 
  In the past four years, BPSDC has brought in some of the world's top architects (Frank Gehry and Foster & Partners), builders, interior designers, marketing agents, consultants and famous brands to develop Battersea, and it is not resting on its laurels as yet.
 
  According to Jauhari, the consortium was expected to sign on a new partner soon to help transform a 500,000 sq ft commercial site in Phase 2.
 
  "Battersea is bringing in the big names and we are talking to one now that can help transform the commercial space in Phase 2. We hope to sign a contract with them by the middle of this year," said Jauhari.
 
  While the project will have more investors coming in during the course of its development, potential buyers, however, will have to wait another four years to purchase a property in Battersea.
 
  Jauhari said the next launch would happen only in 2020. This is because the Transport for London (TFL) is building an underground site under Phase 3 now.
 
  "Until 2019 or 2020, we are not going to launch anything. We have launched 2½ phases and construction is ongoing. We launched only half the site in Phase 3 as the other half was taken by TFL.
 
  "TFL is extending the northern (Tube) line to Battersea and will return the site to us in 2018, so until then we can't launch anything. Once the site is returned to us we will plan the second half of Phase 3, followed by the Phase 4 launch," said Jauhari.
 
  The Battersea will be served by a new Tube station located at the foot of the High Street, which opens out onto the Malaysia Square, a dual-level town square located at the southern entrance of Battersea.
 
  Malaysia Square, unveiled by Prime Minister Datuk Seri Najib Razak last year, takes its architectural inspiration from Gua Mulu in Sarawak. Materials used for it will include a mixture of limestone, granite, marble, sandstone and gravel, with dolomite striations to direct people through the space.
 
  There will also be an amphitheatre featuring a five-petalled fountain shaped like a hibiscus.
 
  Jauhari, who is also managing director of Sime Darby Property Bhd, the property arm of Sime Darby, said the strategy for Battersea was to finish building all the properties that were sold since the first launch in January 2013.
 
  "We are focusing on the construction to ensure timely delivery of all units to the earlier buyers. Phase 1 buyers are expected to get their keys by October," he said.
 
  Phase 1, known as Circus West, comprises 866 apartments as well as offices, retail shops and restaurants across eight buildings, worth a total £1 billion.
 
  The studio, one-, two- and three-bedroom apartments and penthouses were sold for £338,000, £423,000, £613,000, £894,000 and £6 million, respectively.
 
  The apartments were mainly taken up by buyers from China and Southeast Asia, the majority of whom were Malaysians.
 
  Jauhari said only three units remained in Phase 1, which were the bigger penthouses with built-up areas of 4,000 to 5,000 sq ft.
 
  He said BPSDC was in no hurry to sell the penthouses as the Battersea project would take another 10 to 15 years to develop.
 
  Jauhari said Phase 2 was the most challenging as it involved the transformation of an iconic structure.
 
  "We expect Phase 2 to be completed in 2019. The units are priced at £2,000 psf, almost double that of Phase 1," he said.
 
  It will create 254 apartments within and above the power station. The apartments are sub-divided into the Switch House East, the Switch House West and the Boiler House Square, depending on the location.
 
  Under Phase 2, the power station will be restored, generating clean energy by using renewable fuels.

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