£8bn Battersea plans launched
26 July 2012
Plans for an £8bn investment in London’s Battersea Power Station have been unveiled by the building’s owners.
SP Setia, Sime Darby and the Employees Pension Fund of Malaysia expect the initiative to create 20,000 construction jobs and 13,000 permanent jobs by redeveloping the site in south London to turn it into a retail and residential area.Homes, offices, retail space and a hotel will take over the site – with the iconic towers remaining in place – and as part of the deal, Transport for London will work to extend the Tube network to the area.
Under the plans, an extension to the Northern line will be built and the project will provide a major test bed for a tax increment financing-style funding mechanism.
Under this approach, London’s transport agency will seek to borrow capital from the private sector, which will be paid back through the increased taxes being generated once the development is up and running.
