Lenders call time on Viñoly’s Battersea Power Station vision
Lenders have demanded the repayment of £324 million of debt from the developer behind the Rafael Viñoly-masterplanned redevelopment of Battersea Power Station in south London
Lloyds and Ireland’s National Asset Management Agency requested the sum from the majority site owner Real Estate Opportunities (REO) and have lined up administrators to potentially take over parts of the project following a hearing on 12 December.
The decision casts the 750,000m² residential-led scheme into doubt less than one year after it was awarded planning permission.
DRMM and Ian Simpson were appointed to work on the £5.5 billion project’s first phase back in February but work on site has yet to start.
REO has been hunting for investors to fund the project however a statement from the company said there was ‘no certainty that any such transaction will be effected.’
It is understood Malaysian developer SP Setia previously offered to buy the 16.2 hectare site. Chelsea Football Club recently appointed Almacantar and KPF to look at building a 60,000-seat stadium close to the Grade II-listed London landmark (pictured).
Viñoly’s project is the latest in a long line of schemes which have attempted to redevelop the Giles Gilbert Scott designed power station since it was decommissioned 30 years ago.
REO owns 54 per cent of the Battersea Power Station Shareholder Vehicle via two subsidiaries - known as the BPS Subsidiaries - which are now facing administration.
A statement from REO said: ‘The BPS Subsidiaries are currently not in a position to satisfy these demands for repayment.
‘The company remains in discussions which may result in the disposal of the group’s interest in the Battersea Power Station site and repayment of associated liabilities. However, there is no certainty that any such transaction will be effected.
‘The company’s other assets, which are situated in Ireland, are unaffected by the above developments.’
The announcement came a day after chancellor George Osborne announced the government’s support for a Northern Line extension to the area.