All set for the global launch of Battersea’s star-studded apartments

October 20, 2014 1:01 PM SGT

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SINGAPORE: London’s landmark Battersea Power Station will be rolling out a series of designer apartments by two leading men in architecture, Frank Gehry and Norman Foster.

The star-studded series of apartments by Gehry Partners and Foster + Partners will be located in Phase 3 of the development, and number 1,309 in total.

The Malaysian consortium behind the £8 billion ($16.45 billion) Battersea Power Station development is looking at releasing 539 apartments by Gehry Partners and Foster + Partners in a global launch scheduled to kick off simultaneously on Oct 31 in 13 cities from London to Los Angeles.

“It is something that has never been done before,” says Liew Kee Sin, chairman of the consortium company, Battersea Project Holding Co, whose stakeholders are S P Setia, Sime Darby and Malaysia’s Employees Provident Fund.

Gehry’s four new apartment buildings in Battersea Power Station development will be his first landmark development in London.

The buildings will bear his signature dramatic curves and dazzling exteriors, including a titanium-cloaked centrepiece dubbed “The Flower”.

According to Rob Tincknell, CEO of Battersea Power Station Development, “The Flower by Frank Gehry is going to be the most expensive, most stunning residential building in the world”.

A total of 3.5 million sq ft of commercial space will also be up for lease as part of the global launch.

It will be a mix of retail, F&B, leisure, hotels and offices.

The commercial space will not be housed under one roof like a typical retail mall, says Tincknell.

Instead, there will be some retail space within the power station, which will feature “the best of British and international brands”, and retail outlets along the high street, which will see larger tenants like those on Regent Street and Marylebone High Street.

Three hotel sites within the development will be put up for bidding, and there are already keen expressions of interest, particularly from two Singapore hotel operators, notes Liew.

Price upside Buyers who have purchased units in the first two phases will have priority to register for units in the latest phase ahead of the global launch.

“We’re starting in London and KL, with these units mainly open to friends and customers to make sure they are well looked after,” explains Tincknell.

More than 1,000 apartments have been sold over the last 18 months with total sales approaching £1.5 billion.

The investors who purchased units in the first phase (Circus West) of the project when it was launched have seen values appreciate 30%, if not higher, estimates Tincknell.

“A few people have decided to trade on,” he says.

“We helped them [to sell], and they generally reinvest anyway, which is good.” While prices are likely to appreciate further upon completion of the first phase in 2016, Liew reckons the biggest uplift will come sometime in 2019 to 2020.

“That’s when the retail outlets will be open, and the tube station will be ready,” he says.

“Prices are likely to increase the most then.” When the first phase of 800 units were launched in KL and London in late December 2012, more than 600 were snapped up.

Anecdotal evidence was that queues had formed outside the sales gallery ahead of the launch in London.

“Queueing to buy a property in Asia is very common, but in London, we were the first project to see people queueing for hours before the launch of the first phase,” says Liew.

Another 100 units offered to buyers in Singapore and Hong Kong in January 2013 were also snapped up within one weekend of their launch.

Average prices then hovered around £1,100 psf.

When it came to Phase 2 of the development, the consortium decided to do an exclusive launch in London only in April this year.

The units in Phase 2 are premium apartments and penthouses located within the Grade II-listed power station.

Prices started from £3.5 million, or an average of £2,300 psf.

To prevent buyers from queueing up for hours ahead of the launch, tickets were issued to those who were already standing in line, with an assurance of an appointment the following day when the sales gallery opened.

“In the UK, they would take the ticket and come back the next day,” observes Liew.

“But in Asia, they won’t believe you, and will insist on queuing.” Units in Phase 2 showcased premium units with 3m ceiling height and sizes that are 40% to 45% larger than typical apartments in the area, says Tincknell.

There are two penthouses within Phase 2 that were priced at £40 million.

One has been sold, while the other is held by the shareholders of the consortium.

In this latest release of units in Phase 3, there will be a wide variety of units ranging from one- to four-bedroom apartments, townhouses and penthouses.

The units in Phase 3 are generally 15% to 20% bigger than the average apartment in residential developments in the area, says Tincknell.

Every unit will come with a private outdoor space or winter garden, which will function as an extended living area, although buyers need not pay for the winter garden space.

Pricing of the units in Phase 3 has yet to be finalised.

However, prices are likely to be pegged below average prices in Phase 2, but above those in Phase 1.

“Whatever the prices are, they will offer value for money,” declares Liew.

Foreign force It has taken a Malaysian conglomerate to revive the fortunes of the once derelict Battersea Power Station and turn it into London’s latest global icon.

One ambitious scheme after another to restore the building had failed to take off owing to a lack of funds.

It was not until September 2012, when a consortium made up of S P Setia, Sime Darby and Malaysia’s Employees Provident Fund, joined forces to purchase the site for £400 million.

“We were the fourth group to take over the power station,” recounts Liew.

“We bought at the right moment of time.

Property, after all, is about timing.” Right from the start, the consortium saw the possibility of creating an integrated development with residential, office, retail, F&B and hotel components.

Planning permission had already been obtained by the previous group, which enabled the Malaysian consortium to launch the project within a short space of time.

“In cities like Singapore, Hong Kong and Kuala Lumpur, we are very used to such big integrated developments, but something of this scale is relatively new here in the UK,” he says.

And now, the simultaneous global launch is billed as another “extraordinary” feat.

This article appeared in the City & Country section of Issue 644 (Sept 22) of The Edge Singapore.

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