$788M Moves Massive Mixed-Use Project Into New Hands

LONDON-Two weeks after securing planning consent for a massive leisure/retail development, Oriental Property has sold its Battersea Station and surrounding land for euro 595 million ($788 million). The buyer is Irish Group Real Estate Opportunities.

Oriental bought the site 13 years ago for euro 14.84 million ($19.65 million) but it has taken that long and euro 296.9 million ($393.1 million) in consultants fees to secure consent. The site, which covers 38 acres, including 380 meters of riverside frontage, is one of the largest brick buildings in the world. It was built to generate coal-fired electricity in 1939.

Wandsworth Council recently granted six planning consents for the development of 4.5 million sf. Oriental’s plans included two hotels, more than 70,000 sm of class A office, a 2000-seat auditorium and a 750-unit residential component. But REO is expected to submit a new planning application.

Property development company Treasury Holdings, which operates a property portfolio of more than euro 2.1 billion ($2.8 billion), is the major stakeholder in REO. “Those who know the work of Treasury Holdings at Spencer Dock in Dublin should have great confidence that the site is in good hands,” says Ray Horney, chairman of REO. He explained that Spencer Dock is Dublin’s largest urban-regeneration project and comprises 52 acres.