Chelsea had hoped to build a new football stadium on the site and the club was one of 15 bidders. However, the £400m joint bid of SP Setia Berhad and Sime Darby Property Berhad was preferred by the joint administrators responsible for selling the site.
SP Setia and Sime Darby Property have now entered an exclusivity agreement with administrators Alan Bloom and Alan Hudson of Ernst & Young LLP.
The Malaysian developers now have 28 days to conduct further due diligence and to reach a final deal.
SP Setia and Sime Darby Property said that their plans involve the development of a “sustainable multi use real estate regeneration project that will provide economic impetus for the creation of a new vibrant centre for southwest central London”.
The plans will preserve the facade of the historical power plant with its iconic chimney stacks. In addition, the companies have committed to the construction of a new underground station as part of the proposed extension of the Northern Line (part of the London Underground’s Tube network) that is planned to pass by the site. This is viewed as fundamental to the success of this regeneration project.
Chelsea FC expressed disappointment at the defeat and said it was now looking at other relocation options. “We are disappointed not to be selected as the preferred bidder for Battersea Power Station, as we believe we can create an iconic and architecturally significant stadium on the site in a scheme which is commercially viable and of great benefit to the Wandsworth community and London generally,” the club said. “We have been clear throughout this process that Battersea is one of a limited number of options the club is considering.”