Malaysia to scrutinise “dubious” Battersea Power Station deal

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The new Malaysian government will probe and possibly renegotiate the Battersea Power Station deal in London, undertaken by the previous government as part of what is seen as major “dubious” property investments in the UK, Anwar Ibrahim, who leads the recently elected Pakatan Harapan party, told The Guardian during a working visit to London.

The British daily reported on June 11 that Anwar said a series of deals paid for by Malaysian sovereign funds and pension funds brokered by the previous Barisan Nasional administration had to be looked at again and renegotiated if there were any wrongdoing.

The Battersea purchase in 2012 was one of the largest-ever property deals in the UK and – if renegotiated or otherwise questioned – it could send shockwaves across the real estate market in the British capital.

“All these deals which are considered dubious, including investments in housing in London, will have to be investigated. Yes, that includes Battersea. Because they were made using state funds, we have to be convinced that this was the right investment decision and that there was no political influence or direction (within Malaysia),” he was quoted as saying.

He added that many investments by the former government were indeed a “political decision” extending to hundreds of billions of ringgit.

“If there is something wrong then we will want to re-negotiate,” Anwar said.

The Battersea Power Station has been purchased by a consortium of Malaysian investors comprising Sime Darby Property Bhd, SP Setia Bhd and the Employees Provident Fund in 2012. The iconic decommissioned coal-fired power station on the south bank of the River Thames is currently under re-development to become a new mixed-use prime destination in London, with completion set for 2028. It will comprise of 4,000 homes and commercial buildings, including Apple’s future headquarters in the UK.

In January, Permodalan Nasional Berhad, a Malaysian state fund, agreed to buy a direct stake from the other Malaysian shareholders in the power station which includes several commercial buildings, valued at £1.6 billion ($2.1 billion).

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Reading Time: 2 minutes

The new Malaysian government will probe and possibly renegotiate the Battersea Power Station deal in London, undertaken by the previous government as part of what is seen as major “dubious” property investments in the UK, Anwar Ibrahim, who leads the recently elected Pakatan Harapan party, told The Guardian during a working visit to London.

Reading Time: 2 minutes

The new Malaysian government will probe and possibly renegotiate the Battersea Power Station deal in London, undertaken by the previous government as part of what is seen as major “dubious” property investments in the UK, Anwar Ibrahim, who leads the recently elected Pakatan Harapan party, told The Guardian during a working visit to London.

The British daily reported on June 11 that Anwar said a series of deals paid for by Malaysian sovereign funds and pension funds brokered by the previous Barisan Nasional administration had to be looked at again and renegotiated if there were any wrongdoing.

The Battersea purchase in 2012 was one of the largest-ever property deals in the UK and – if renegotiated or otherwise questioned – it could send shockwaves across the real estate market in the British capital.

“All these deals which are considered dubious, including investments in housing in London, will have to be investigated. Yes, that includes Battersea. Because they were made using state funds, we have to be convinced that this was the right investment decision and that there was no political influence or direction (within Malaysia),” he was quoted as saying.

He added that many investments by the former government were indeed a “political decision” extending to hundreds of billions of ringgit.

“If there is something wrong then we will want to re-negotiate,” Anwar said.

The Battersea Power Station has been purchased by a consortium of Malaysian investors comprising Sime Darby Property Bhd, SP Setia Bhd and the Employees Provident Fund in 2012. The iconic decommissioned coal-fired power station on the south bank of the River Thames is currently under re-development to become a new mixed-use prime destination in London, with completion set for 2028. It will comprise of 4,000 homes and commercial buildings, including Apple’s future headquarters in the UK.

In January, Permodalan Nasional Berhad, a Malaysian state fund, agreed to buy a direct stake from the other Malaysian shareholders in the power station which includes several commercial buildings, valued at £1.6 billion ($2.1 billion).

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