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Office space planned for Battersea Power Station

Office space planned for Battersea Power Station
Date: 1/5/2010

Commercial real estate and office spaces are among the plans for industrial wasteland site Battersea Power Station in London.

Reuters reported that the area is subject to various planning applications, which include one by Real Estate Opportunities submitted in October 2009.

Plans include some 1.6 million square feet of commercial office space.

But banks are focussing on "unscrambling exposure to commercial real estate", it was reported.

Developers need £5.5 billion for the redevelopment, which must happen sooner rather than later, according to chief planning director at Treasury Holdings UK Jeremy Castle.

"The building is likely to suffer major structural damage in five years if full repairs don't start before then … We need to move fast to redevelop the site because the building is deteriorating quickly," he said.

Commercial mortgages must be sought to finance the development.

There is an estimated £280 billion worth of unpaid commercial property loans in the UK, Reuters noted.

According to its website, Battersea Power Station was established in the 1930s as the first large coal-fired electrical generating facility aiming to improve the country's energy supply.

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