SP Setia and Sime Darby Property Bhd are selling their stakes in Battersea Power Station building to PNB-Kwasa International 2 Ltd for £1.583bil (RM8.351b).

PNB-Kwasa International 2 is a joint venture of Permodalan Nasional Bhd (PNB) and the Employees Provident Fund (EPF).

Battersea Phase 2 Holdco is a unit of Battersea Project Holding Company Ltd, which is owned by Sime Darby Property Bhd and S P Setia Bhd, each holding a 40% stake, and EPF holding the remaining 20%.

In a joint statement issued by SP Setia and Sime Property, the development was a major step in the ownership reorganisation for Phase 2 of the Battersea Power Station commercial.

"We are pleased with the sale of the Phase 2 commercial assets. It will bode well with our business plans as we continue to play a major role in the overall development of this iconic project. S P Setia is fully committed and positive on the long-term prospects of the project," said SP Setia president and CEO Datuk Khor Chap Jen. "We would like to thank all the parties involved in evaluating this acquisition and making this transaction a success. The commitment shown by all demonstrates the confidence in this iconic London landmark development," Khor said. "This is an important milestone in the development of the Battersea Power Station site, and it is a strong sign of confidence in the long-term success of this global property icon. We are pleased to have secured this commitment from two of Malaysia's leading institutions," said Sime Darby Property Group managing director Amrin Awaluddin.

Under the terms of the sale and purchase agreement, Battersea Phase 2 Holdco will dispose of the commercial elements of the Battersea Power Station building for a base consideration of £1.583 billion (equivalent to approximately RM8.351bil).

The transaction is expected to be completed in the first quarter of 2019.

London-based Battersea Power Station Development Company (BPSDC) will continue to manage the project, whilst subsidiaries of BPSDC Battersea Power Station Asset Management Ltd and Battersea Power Station Estate Management Ltd will be appointed as the asset manager and property manager after practical completion of the Power Station building for an initial term of 10 years.