(Adds NAMA and Lloyds decline to comment in 7th paragraph.)
Nov. 24 (Bloomberg) -- Lloyds Banking Group Plc and Ireland’s National Asset Management Agency rejected a 262 million-pound ($407 million) offer from SP Setia Bhd. for senior debt related to the London landmark Battersea Power Station.
Lloyds and NAMA said yesterday that they don’t intend to further consider the offer, according to a statement today by SP Setia. The Kuala Lumpur-based company, Malaysia’s biggest public traded property developer by sales, said it would look for other U.K. investment opportunities.
“Property development prospects in London are positive,” SP Setia said. “The group will continue to look out for and assess other possibilities to invest.”
Irish developers Richard Barrett and John Ronan, whose Jersey-registered Real Estate Opportunities Plc owns the Battersea site, need to raise money to fund the development and meet obligations to the creditors. Real Estate Opportunities plans to build 3,400 homes and 330,000 square meters (3.5 million square feet) of commercial space on the site. The project won government approval in February and construction, expected to last a decade, may begin next year.
Located on the south bank of the Thames River, the coal- fired power station has been featured in art, film and other media, including the album-cover artwork for the 1977 Pink Floyd record “Animals.” The conjoined buildings with four smoke stacks were designed by Giles Gilbert Scott, who also devised London’s iconic red public telephone boxes.
Real Estate Opportunities has been seeking a partner to help develop the 38-acre (15 hectare) site, which it bought about five years ago. Negotiations were continuing “with a number of potential global investors expressing strong interest in committing to the project,” the company said in a statement last month.
NAMA spokesman David Clerkin and Lloyds spokesman Emile Abu-Shakra declined to comment.
Europe’s fiscal crisis has roiled credit and equity markets and sparked concern that London’s commercial real estate market may suffer from a second recession in three years. U.K. gross domestic product rose 0.5 percent from the previous quarter, when it increased 0.1 percent, the Office for National Statistics said today in London.
--With assistance from Chris Spillane in London. Editors: Jeff St.Onge, Ross Larsen.
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