Ernst and Young has been appointed administrators to Rafael Viñoly’s £5.5 billion redevelopment of Battersea Power Station in south London
A High Court judge in London approved a petition by project creditors Lloyds and NAMA to declare subsidiaries of the Battersea Power Station Shareholder Vehicle insolvent.
Majority site owner Real Estate Opportunities (REO), which commissioned Viñoly to win planning permission to build 3,400 homes on the site, had until today to repay £324 million of debt to Lloyds and NAMA. A further £178 million was owed to Oriental Property.
The creditors could now move to recover their money by selling the site or the debts.
Last week sources close to the project claimed the Viñoly vision was already ‘kaput’ and would be officially over ‘in the next few weeks’.
Ernst and Young’s appointment could therefore bring about the fourth sale of the site since the government put the Grade II*-listed landmark on the market in 1984.
Developers interested in the site include Chelsea Football Club. Last month, the Blues appointed developer Almacantar and KPF to come up with plans for a 60,000-seat stadium on land close to the power station.
Last week, Terry Farrell has launched a ‘pragmatic and incremental’ solution to the ongoing saga which would see much of the power station demolished leaving only the front and back elements and their chimneys.