Located in South West London, Battersea Power Station has been out of action for the past 50 years. In that time, it has become one of the most iconic landmarks in London and was listed as a grade two building (a special interest building). With numerous proposals throughout the years to regenerate Battersea Power Station and the surrounding areas failing to get anywhere, more recent plans have begun to gain momentum. So let’s take a look at Battersea Power Station: Commercial Property Regeneration.
Battersea Power Station is one of London’s eagerly anticipated new development, covering a 42-acre industrial site that will become one of the capital’s most exciting hubs for shops, restaurants, cafes, offices and living space. There is to be 18 acres of public spaces, including parks and rooftop gardens for residents. The project is estimated to cost around £9 billion and is being dubbed as the ‘jewel in the crown’ of London’s regeneration effects. The construction is due to finish by 2025/26 and approximately 25,000 people will live and work in the new development.
This regeneration project has been divided into eight phrases, each designed by specialist architects, injecting a variety of style and charisma to the project. The power station will become a new office district with 3 million sq. ft of commercial property space alongside private and affordable homes. Not to mention the development at Nine Elms on London’s South Bank will have 250 shops, restaurants, cafes, village hall, community hub, two hotels, street food market, two medical centres and a six acre public park.
Spearheaded by a Malaysian consortium, the ‘phases’, are already underway and so as commercial estate agents, we decided to explore the impact of these latest commercial developments.
Regeneration of Commercial Property
Rob Tincknell, chief execution of the Battersea Power Station Development Company recently added that ‘I could easily see us adding another million square feet of offices. If there’s no residential market and a very strong office market then we will build offices’. After a slump in the luxury home market, the developers are looking to succeed in office space, as Apple will open its UK headquarters in 2021 in a 500,000 sq. ft. office. Apple’s presence will surely lure in a number of other prolific companies and base themselves at the new site. Co-working space for other smaller companies will also be included to entice SME’s.
One of the biggest coups so far for the developers has been the announcement that Apple will be making the derelict Battersea Power Station their London headquarters. Having such a huge name will not only attract other companies to potentially follow suit but create a ton of jobs for qualified professionals. Similarly, retail stores and restaurants will also provide various employment opportunities for individuals looking to work in those respective sectors.
With developers stating that they would not allow massive well-known chain bars and restaurants to set-up, it will give the area a sustainable competitive advantage. Independent and unique stores (who are not well-established names) will provide individuals with an incentive to not only visit these places but specifically come to the area should they take a liking to any of them. Bars, restaurants and retail stores will also provide an attractive value proposition for tourists and those wanting to experience something new.
Injection to Local Economy
With its rejuvenation, Battersea is likely to attract a huge number of tourists from around the world as an attractive destination to visit whilst in London. Office workers will also provide ample of custom to local restaurants and bars for them to be sustainable financially. The local council would also benefit from increased business rates in the form of taxes from the retail outlets, bars and restaurants. In turn the local council would be in the fortunate position to benefit from increased tax revenue which could be used to improve schools, roads, medical centres and hospitals in Battersea.
More Living Space
With a precedented shortage in living space in London, the construction of apartments would be a very welcome addition for those seeking property. There is also low risk of these apartments going unoccupied as those working in the area would be looking to live close-by for convenience. The apartments would also contribute towards the community environment which the regeneration is hoping to facilitate.
After years of uncertainty, Battersea has final got a solid pathway to build upon. The regeneration will not only make Battersea a thriving area but establish it as one of the up and coming vibrant staples of London. With offices, apartments, bars, restaurants and retail outlets all within a close vicinity – it will create a strong community with a sustainable future.
All image credits courtesy of the press office at Battersea Power Station