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Battersea's 2nd phase to cost more than twice of phase 1
Publication Date : 24-04-2014
The second phase of the Malaysian-owned Battersea Power Station redevelopment project is being priced at a record level in the Nine Elms area of London, making it a new prime area to watch.
Tagged at an average price of £2,300 (US$3,859) per sq ft, this is more than double its phase one price of £1,100 per sq ft. It is also 176% higher than the average price of £832 per sq ft for newbuilds in the Nine Elms area, according to property consultancy Kinleigh Folkard & Hayward.
Phase two comprising 254 units, with an approximate gross development value of £1.6 billion, is to be launched in London next Thursday.
For phase one last year, all 861 units were sold within three weeks from the launch. The phase two apartments, which are located within and above the Battersea Power Station, are considered “hotter property” because of their location at the heart of the power station.
“The preview has been very successful. There is a strong likelihood that the apartments will all be snapped up on the day of the launch itself,” said a Battersea insider.
“The benchmark pricing set by Battersea showcases the success of a Malaysian developer. It puts Malaysia’s name among the list of premium developers such as Ballymore, Barratt Homes and the Berkeley Group in the UK,” said one observer.
He added that the biggest gainers were likely the buyers of Battersea’s phase one units. Not only did they buy at a much lower entry cost amid scepticism about a Malaysian developer, but also when the pound sterling was a lot lower at an exchange rate of 4.96 ringgit (US$1.52) compared with 5.49 ringgit now.
During the phase two preview that was held in Singapore recently, the indicative pricing of the units given to privileged customers stated that the studio apartments would start from £800,000, the one-bedroom unit from £1 million, the two-bedroom unit from £1.5 million, while the three-bedroom and four-bedroom units from £2.7 million and £4 million respectively. The price for the penthouses would be upon application.
For phase one of Battersea, some 50% of the buyers were Malaysians, Singaporeans and Hong Kongers, while the remaining 50% were Londoners.
For phase two, indications are that the majority of the buyers will be Londoners.
In addition to the 254 new homes, there will be 1.3 million sq ft of commercial space, including three levels of retail. The leisure and entertainment zone will include a 2,000-capacity auditorium, cinemas, restaurant, conference spaces, a boutique hotel and offices for around 10,000 people. There will be a huge central atrium, new public squares and piazzas.
The redevelopment of the Battersea Power Station is being undertaken by Battersea Project Holdings Co Ltd (BPHC), which is controlled by S P Setia Bhd and Sime Darby Bhd, with a 40% stake each, and the Employees Provident Fund with 20%.
Outgoing S P Setia president and chief executive officer Liew Kee Sin will remain as chairman of BPHC until September 2015.
The £8 billion Battersea project is slated for completion in 2022.
At 195 hectares, Nine Elms on the South Bank is the largest regeneration zone in central London, where a major investment is taking place to transform the area from a semi-derelict light industrial zone into an ultra-modern residential and business district.
The three main attractions for Nine Elms are the regenerated Battersea Power Station, the new US Embassy and New Covent Garden Market – the largest fresh produce market in the country.
*US$1 = £0.60
US$1 = 3.27 ringgit