Battersea falls before first hurdle

Administrators have been appointed on behalf of Lloyds Banking Group and Irish National Management Agency to oversee the repossession and sale of Battersea Power Station.

Current owners, Real Estate Opportunities, failed to secure the required £300m to finance the redevelopment project and stave off outstanding debt that was due for repayment in August. Ernst & Young have now been appointed as administrators. Its is understood that the Battersea site will be put on the open market with REO having no further involvement in the project.

The set back comes just days after the Government announced part- funding towards an extension of the Northern Line to the Battersea site; an infrastructure project considered vital for the survival of the site. REO have to date spent five years and £50m securing the required planning permissions to move forward with a proposed £5.5bn regeneration of the former power station and surrounding area.

Several parties have already shown interest in the 38-acre Battersea site, considered one of London’s last available prime development spots, though the mandatory contribution of £200m towards the extension of the Northern Line remains a sticking point. A new development on the site will generate as many as 25,000 new jobs it is hoped.