Baker & McKenzie has advised the lenders on the GBP1.35 billion financing of the Battersea Power Station, one of the largest real estate financings in the UK in recent years.
The Firm advised CIMB Bank Berhad, Labuan Offshore Branch, Maybank Kim Eng Securities Pte Ltd, Standard Chartered Bank, and Standard Chartered Saadiq Berhad as the mandated lead arrangers, bookrunners and joint coordinators on the financing. Battersea Power Station is an iconic decommissioned coal-fired power station located on the south bank of the River Thames in London.
The financing comprises a GBP750 million facility for Phase 2 and a GBP600 million facility for Phase 3 for development of the site, the latter consisting of a combination of Islamic financing and conventional financing. The development plan for the site includes the construction of apartments, office buildings, hotels and other commercial outlets as well as a planned high street called the Electric Boulevard.
The multijurisdictional transaction involved several offices and member firms. It was led by Singapore member firm Baker & McKenzie.Wong & Leow, with the team led by Singapore principal Emmanuel Hadjidakis and supported by local principal Kah Chin Chu, senior associate Simon Gray, and associates Allison Hancock, Nicole Carragher and Liwei Ling.
The team worked closely with colleagues in Hong Kong, Malaysia and London. Wong & Partners, Baker & McKenzie's member firm in Malaysia, advised on the Malaysian law aspects of the transaction, led by partner Mark Lim and assisted by partner Esther Chik and associates Esther Low and Wei Guan Wong. Baker & McKenzie's Hong Kong office advised on the Hong Kong law aspects of the transaction and was led by partner Sally Hung, who was supported by international associate Fiona Wang.
Baker & McKenzie's London office advised on both the real estate and construction aspects. Partners Justin Salkeld and Stephen Turner led the real estate team, assisted by senior associate Sophie Walters, while partner Mike Webster advised on the construction aspects, supported by senior associate Tania Arora.
Emmanuel Hadjidakis said: "We are delighted to have worked with the lenders on this landmark transaction, which will see the revival of the iconic Battersea Power Station after 30 years. This transaction demonstrates the strong interest from Southeast Asian corporates and funds in investing abroad, particularly in the London property market, and the willingness of the international and Southeast Asian banks to follow their clients into these cross-border deals."
"This deal is a testament to our ability to lead complex transactions, which include a conventional tranche and an Islamic tranche and to do so with one team which is on the ground, allowing us to do so efficiently and cost-effectively. This transaction is consistent with the trend we have seen in recent years of large-scale financings having a conventional and an Islamic tranche in order to diversify borrowers' funding sources," Emmanuel added.
This latest financing follows the Firm's work in late 2013, advising the lenders on the GBP790,200,000 syndicated financing for the Phase 1 development of the Battersea Power Station site.
Battersea Power Station ceased operations as a coal-fired power station in 1983, and has since become part of the London skyline. The site is regarded as one of the largest developments in London. It was acquired by a consortium made up of Sime Darby Bhd, SP Setia Bhd and the Employees Provident Fund for GBP400 million in July 2012. Wong & Partners advised Sime Darby on its joint venture with the subsidiaries of SP Setia Berhad and the Employees' Provident Fund Board to form a primary vehicle, Battersea Project Holding Co Ltd, for the purchase.
