Chelsea Football Club has lost out in its attempt to redevelop Battersea Power Station, being outbid by Malaysia's SP Setia and Sime Darby.

Some 15 bidders submitted plans last month to buy the protected 15-hectare site on the south bank of the river Thames, which has been the subject of repeated failed redevelopment attempts in the three decades since it shut.


The Malaysian property companies have inked an exclusivity agreement with Alan Bloom and Alan Hudson of Ernst & Young, the joint administrators and receivers, to acquire the site for £400m, SP Setia and Sime Darby said in a joint statement on Thursday.

The deal marks SP Setia's first foray into Europe and adds to its residential schemes in Vietnam, Singapore and Malaysia.

The Malaysian companies said the redevelopment of the site would revive southwest central London.

SP Setia and Sime Darby will build a new underground train station as part of the proposed extension of the northern line of the London network.

(H/GK)