Battersea put on sale 'in New Year'

Several “major players” have expressed interest in buying the Battersea Power Station site since the scheme collapsed in to administration last week, according to the firm handling the process.

Administrator Ernst & Young said in a statement that it expected the 55-acre site to formally go on the market early in the new year, with a sale expected to take up to nine months to complete.

In a statement it said “a number of major players” had registered interest in the site.

Interested parties will include Berkeley Group, whose boss Tony Pidgley confirmed his interest to Building last week. In addition Chelsea Football Club, through developer Almacantar, Development Securities and British Land are all thought to be likely bidders.

The planning framework here is based on the delivery of two new Northern Line stations. This is key to creating 25,000 new jobs and unlocking billions in growth

Building understands it is also possible the original owners, Real Estate Opportunities, have not given up on bringing the site to fruition, and could bid if they are able to secure further financial backing.

The site is one of the biggest development opportunities in London, coming with planning consent for 750,000m² of development including a new town centre, 3,400 homes and a government backed-plan for a new Tube connection to the Northern Line.

However, any bidder will also have to negotiate taking on £502m in debt from the collapsed scheme, a huge section 106 charge to help fund the Tube link, and the cost of repairing the power station itself, with insiders saying these costs could together near £1bn.

Ravi Govindia, leader of Wandsworth council, met Ernst & Young on Monday. He said: “The planning framework here is based on the delivery of two new Northern Line stations. This is key to creating 25,000 new jobs and unlocking billions in growth and new inward investment throughout the wider Vauxhall Nine Elms area.

“We are excited about the prospects for this prominent site and look forward to working with Ernst & Young as they seek a buyer with the commitment to take this forward.”

Alan Bloom, Global Head of Corporate Restructuring at E&Y, said: “We are looking forward to a continued constructive dialogue with Wandsworth Council.”