LONDON: The redevelopment of one of London’s most iconic buildings has piqued the interest of Gulf buyers, who have snapped up millions of dollars’ worth of properties in what will soon be one of the British capital’s trendiest commercial, residential and cultural quarters.
Completed in 1935, Battersea Power Station has long held a special place in the British psyche.
It dominated the London skyline and powered the UK economy for decades. Plumes of smoke from its iconic four chimneys even guided British fighter planes home after bombing runs during World War II.
Now the building, with its coal-burning past firmly behind it, is taking on a new role as one of the capital’s hottest commercial developments — and Arab buyers have taken notice.
Simon Murphy, CEO of the Battersea Power Station Development Co. — which is redeveloping the unused site into luxury living spaces, retail quarters and offices — told Arab News that around 20 percent of homes in the complex are being sold to Middle Eastern investors.
“Within this, the majority have been from the UAE, Kuwait and Saudi Arabia. We’ve recently received over 100 enquiries mainly from buyers from Saudi and the UAE in the last month,” he said.
“There are a number of reasons why Battersea Power Station appeals to buyers from the Gulf,” he added, including its lucrative financial opportunities, its prime location next to the River Thames, and the abundance of green space provided in neighboring Battersea Park.
“Gulf buyers are also attracted to the project’s mix of uses, which includes homes, offices — including Apple’s new UK campus — shops, restaurants, cafes, bars, cinemas, theaters, a hotel and more. This genuine mix of uses is something that resonates with buyers from the Middle East,” he said.
“The unique history and heritage of the power station building itself, which welcomed its first residents last month, is of course another point of attraction. The opportunity to buy a slice of British history is greatly appealing.”
Grahame Clist, a consultant at property investment firm Spot Blue, told Arab News that people’s expectation that the London property market would be crippled by the coronavirus pandemic turned out to be unfounded.
“If you’re taking a medium-term view for properties in London, especially for places like Battersea Power Station, then you’ve got a sound investment and something that not just Saudis but everyone in the world wants,” he said.
The pandemic stalled the property market and held back transactions, but when the ability to conduct viewings resumed there was a “massive uptake” of people looking to re-enter the market, he added.
“There’s been, to a certain degree, a property shortage that has held the market up,” Clist said. “In the Greater London area, prices have increased by at least 10 percent in the last six months — and that’s if you can find a property.”
Developments such as Battersea Power Station, he said, are among the first to capitalize on this surge in demand.
He echoed Murphy’s emphasis on the importance of British history in the development’s popularity.
“It’s an iconic London building,” Clist said. “It’s almost as if Buckingham Palace was turned into apartments and put on the market — people would be rushing in to buy them from all over the world.”