Barking and Battersea Power Stations: The Latest
Could another London power station be available for development like Battersea Power Station? The Barking Power Station is being offered for £100 million and the City of London Corporation is said to be in ‘pole position’ as the purchaser according to the Evening Standard. The property along the riverfront is on 42 acres and is expected to be new home for three markets which are owned by the London Corporation including Billingsgate, New Spitalfields and Smithfield. The land is then to be used new home developments.
Other bidders have been interested in the site including Amazon for a distribution centre.
Barking Power Station, London
According to Property Week magazine:
“The Corporation is very keen on the site, as sites of this size and location are hard to come by.”
“The value they will release at the three markets in the City by turning them into huge commercial schemes is massive. But they are up against Amazon, which is desperate to find sites as close to central London as possible to build its multi-storey centres.”
The gas-fired power station came online in 1995 and was previously owned by ATCO of Canada. By 2014 the building was closed and the property demolished in 2017.
The City of London Corporation said:
“The world-leading wholesale food markets in Billingsgate, New Spitalfields and Smithfield are part of the fabric of London. To secure their continued success we’re developing a programme for consolidating the markets onto one site.”
“We’ll be consulting with market tenants, traders and customers to develop the requirements for a new market.”
Barking and Dagenham regeneration agency Be First tells the Evening Standard:
“Any development will bring quality jobs and economic growth. We will work with all parties to ensure this site is brought back to life as soon as possible. It’s an exciting time for Barking and Dagenham.”
Agency Gerard Eve which is handling the sale, will announce the winning bidder next month.
Apple and Battersea Power Station
Reports by IBB Solicitors are that Apple computer is in the process of extending the leases of its current office in the UK as a result of delays on the construction of its new London based headquarters at the Battersea Power Station. Other plans also call for moving to temporary locations to accommodate staff if the new offices are not ready by December 2020.
The 42 acre power station site is still under development for its residential and commercial upgrades. Construction began after a Malaysian group was purchased for £1.6 billion in 2012 with another £1 billion for development.
Apples corporate presence in the massive building, once the largest brick building in Europe, will lease for up to 15 years 500,000 square feet or 40% of the buildings total space of 1,250,000 square feet. The new Apple campus is expected to have 1,400 employees. The lease agreement gives Apple three years of rent-free tenancy for with a charge of £40 to £45 per square foot once the first three years are completed.
Battersea Power Station, London for more on its history visit batterseafiles.co.uk
Simon Murphy, chief executive of the Battersea Power Station Development Company, (BPSDC) :
“We’ll give them [Apple] that building at the end of 2020….everyone is very confident about [that] at this stage . . . and then you’ll probably see Apple coming in some time after. Their fit-out is a big job.”
An Apple spokesperson says the company is “looking forward to opening [its] new London campus at The Battersea Power Station in 2021.”
Whilst Apple and (BPSDC) express confidence in meeting the December 2020 deadline delays have plagued the development mainly for the delivery of residential apartments to buyers. A total of 4.330 apartment units are expected at completion
Mr Murphy states:
“We told everyone what the situation was, we offered them the chance to stay or go, and I'm delighted that 80
percent have said they will stay.”
Costs for the development have increased from £740m to £1.5bn in phase two of construction.
The Wandsworth Council agreed to concessions in regards to the Section 106 Affordable Housing arrangement thus reducing the original plan for the number of incorporating affordable homes for BDSDC by 250 homes.
Upon completion the total redevelopment of the Battersea Power Station project is estimated to be £9 billion.