The sale of Battersea Power Station to a consortium of Malaysian property developers and a pension fund brings the prospect of development on the iconic site closer after 30 years of false dawns.
The Northern Line Extension will be crucial to the viability and commercial success of the project, and the funding for the NLE illustrates several trends in infrastructure development. Pension funds (in this case the Employees’ Pension Fund of Malaysia) are prepared to take direct involvement in developments anywhere in the world in search of returns; and new funding methods (such as Tax Incremental Funding) are being used to close the funding gap. Whether the project will succeed without further innovative procurement solutions being implemented remains to be seen. The role of Transport for London, the Department for Transport and other government bodies will be vital if Battersea is finally to realise its potential.