Battersea Power Station sale: Malaysian company beats Chelsea bid

Battersea Power Station in London has been sold to a Malaysian company, beating a rival bid from Chelsea Football Club.

SP Setia and Sime Darby have bought the 39-acre (15 hectare) site on the south bank of the River Thames for £400m.

In a statement, joint administrators from Ernst and Young said it had entered into an exclusivity agreement with the company.

Chelsea was one of 15 bidders for the former power station.

Part of the winning application included plans to build a new London Underground station on the Northern Line.

Local planning authority Wandsworth Council said the deal was "potentially very good news".

Council leader Ravi Govindia said: "We're making tremendous progress towards transforming this old industrial stretch of the South Bank which will provide up to 25,000 new jobs for London.

"It's important that this site and its iconic building are not left behind and that a developer is brought in who understands our vision for the new Nine Elms."

Battersea, a Grade II listed building, opened in 1933 and generated power until 1983.

It was acquired by Real Estate Opportunities, the majority owner of the holding company, in 2006, but last year creditors were called in following its £502m debt.

Chelsea Football Club have been unavailable to comment.