London’s Battersea Power Station developer plans to sell luxury apartments for as much as 30 million pounds each, anticipating buyers will pay a premium to own prominent pieces of the historic building.
Battersea Project Holding Co. bought the Battersea site for 400 million pounds last year after its previous owner was put into administration, a U.K. form of bankruptcy protection. They will begin by selling 250 apartments at 2,500 pounds a square foot in April. The estimated price of a penthouse, to be built in the second phase of construction, is 25 to 30 million pounds.
The Battersea plant is Europe’s largest brick building and built in the 1930s consists of four 350-foot-high smokestacks, it is an investment that comes with the opportunity to own a genuine piece of British history in a unique location. The development is part of the Vauxhall Nine Elms Battersea Opportunity Area south of the River Thames and across from the Kensington & Chelsea and Westminster boroughs. It’s the U.K. capital’s largest redevelopment area and includes a new U.S. embassy and an extension of the London Underground.
The developer’s Malaysian roots may help it reach Asian buyers who have been snapping up London new homes following property curbs in their home country. Two-thirds of new London homes sold before completion are being purchased by Southeast Asian buyers. Measures taken by Singapore and Hong Kong to cool their housing markets have prompted buyers to seek investments abroad.Luxury-home developers are planning to build more than 20,000 properties in London over the next decade. The Battersea development has about 6,000 registered customers and there’s no risk of oversupply of luxury apartments in the area. The project’s first phase was sold in excess of 1,000 pounds a square foot and the third phase is expected to come to market in September next year at 1,800 pounds a square foot.
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