CHELSEA FOOTBALL club owner Roman Abramovich has lodged an offer to buy the National Asset Management Agency-controlled Battersea power station in London to build a new football stadium.
Dozens of bids were received yesterday for the landmark site, which was put on the market after Nama and Lloyds Banking Group called in loans held by Treasury Holdings’ Real Estate Opportunities (REO).
The football club, currently based across the Thames at Stamford Bridge, plans a “world-class” 60,000-seater stadium, along with the retention of the grade II-listed chimneys and turbine rooms.
In addition, the club plans a town centre, with affordable housing and shops, and is ready to make “a significant contribution” to extending London Underground’s northern line.
“We also appreciate that we have many significant hurdles to address if we are to build a new stadium on the site,” the club, owned by the Russian billionaire, said yesterday.
However, Wandsworth Council, which has planning authority over Battersea, is not in favour of the Chelsea bid. Newly re-elected London mayor Boris Johnson is similarly opposed.
A supporter-led company, Chelsea Pitch Owners, which owns the freehold to Stamford Bridge, last year refused to sell its rights to Mr Abramovich, preventing the sale of the ground.
In a statement, Ernst Young said it was “encouraged” by the strong level of interest, adding that recommendations on the best offers would be made shortly.
Treasury this week began legal action in Dublin challenging the appointment of administrators to its assets, but the sale of Battersea will continue.
Last year, REO gave up ownership of almost half of the power station and the 40 acres surrounding it in debt-for-equity swaps with lenders and creditors.
Nama and Lloyds waived a deadline on debt due to be repaid last August to lend time for talks, but subsequently placed it in administration when no deal was done.
Up to 100 viewings of the property have been organised in recent weeks. Battersea has defied all attempts by a series of developers over three decades to do anything with it.
Besides Chelsea, others interested include a Malaysian interest, SP Setia; London Regional, a company owned by the London-based Livingstone brothers; and housebuilder Berkeley.
The Wellcome Trust charity has also displayed interest, along with Olympic village developer Delancey and the Hong Kong-based Hutchison Whampoa.
A new owner, however, will have to pay £500 million (€617 million) for the power station, including £325 million to cover the debts held by Nama and Lloyds, and a £100 million contribution to the northern line extension.
According to Property News, developer Godfrey Bradman is allied with the former owner of the property, Victor Hwang, who holds £178 million of unsecured junior debt secured against it.
