Battersea Power Station: ghost flats worth £1.8bn!

Versione in Italiano

We learned from the pages of London Evening Standard that “More than £1.8 billion worth of homes have been sold at Battersea Power Station since they went on the market in January last year”. None on these flats have been built yet.

Apparently most of this £1.8 billion came from the fortunate global launch that Battersea Power Station Development Company organized last month.  As we already suspected, the search for overseas investors has not been affected by fear of the chinese property bubble bursting – the due date of which is still under discussion among financial analysts.  The threat of a Mansion Tax did not slow the rush of foreigners to use their deep pockets in order to get their piece of Battersea Power Station. Even if the London property market, as shown in Estate Agents Knight Frank’s report (see below), has appeared to slow down in the last few months, off-plan sales seem to work pretty well.Taking Battersea Power Station as reference for this trend, The Newstatesman  recently reported that:

“Off-plan profits hit the headlines last week with reports that a studio flat in Battersea power station, sold for close to £1m in the spring, is now due to go back on the market for up to £1.5m before it has even been built.”

Before anything has even been built, and while our concerns about the “Big Bang” business model of monstrous development projects are all to be proven erroneous, Battersea Power Station Development Company has actually done what all Battersea Power Station’s previous developers have already proven to be masters at: demolition!

Battersea Power Station: photograph taken by Spectacle on 08/12/2014

The first chimney of Battersea Power Station is gone. In the next weeks we will probably see it to come slowly back to a new life while the other three will start coming down all at once. We hope that the £1.8 billion will give Battersea Power Station Development Company enough energy to prove that, other than demolitions, they are good at building too.

 

Click Battersea Power Station for more blogs
See our Battersea Power Station project pages for more information and videos.
Or visit PlanA our general blog on urbanism, planning and architecture.

Spectacle homepage
Like Spectacle Documentaries on Facebook
Follow SpectacleMedia on Twitter

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Add to favorites
  • Current
  • email
  • Google Buzz
  • Identi.ca

Battersea Power Station: appartamenti fantasma già venduti per £1.8 miliardi!

English version

Abbiamo appreso dalle pagine del London Evening Standard che “More than £1.8 billion worth of homes have been sold at Battersea Power Station since they went on the market in January last year”. Nessuno di questi appartamenti è stato ancora costruito.

A quanto pare la maggior parte di questi £1.8 miliardi proviene dalle vendite avvenute durante il fortunato lancio globale che la Battersea Power Station Development Company ha organizzato il mese scorso. Come sospettavamo, la ricerca di investitori stanieri non è stata resa difficoltosa dalle paure riguardanti l’esplosione della bolla immobiliare cinese – gli analisti finanziari stanno ancora discutendo su quando ciò avverrà. La minaccia di una Mansion Tax (tassa su immobili di lusso) non ha rallentato la corsa degli investitori stranieri per accaparrarsi il proprio costoso pezzo di Battersea Power Station. Nonostante il mercato immobiliare londinese, come mostrato dal report dell’agenzia immobiliare Knight Frank (vedi sotto), ha mostrato rallentamenti nel corso degli ultimi mesi, le vendite su progetto sembrano funzionare molto bene.Prendendo la Battersea Power Station come esempio di questa tendenza, recentemente The Newstatesman ha scritto:

“Off-plan profits hit the headlines last week with reports that a studio flat in Battersea power station, sold for close to £1m in the spring, is now due to go back on the market for up to £1.5m before it has even been built.”

Prima che sia stato costruito alcunché, e mentre le nostre preoccupazioni riguardanti il “Big Bang” dei modelli finanziari usati dai grandi progetti di sviluppo immobiliare aspettano di essere falsificate dai fatti,  Battersea Power Station Development Company ha già realizzato l’unica cosa che  tutti i precedenti costruttori impegnati nel progetto hanno mostrato di fare con maestria: demolire!

Battersea Power Station: fotografia scattata da  Spectacle il giorno 08/12/2014

Battersea Power Station: fotografia scattata da Spectacle il giorno 08/12/2014

La prima ciminiera della Battersea Power Station è andata. Nelle prossime settimane assisteremo con ogni probabilità al suo lento ritorno a nuova vita, mentre le altre tre ciminiere verranno smantellate contemporaneamente. Speriamo che i £1.8 miliardi daranno alla Battersea Power Station Development Company energia sufficiente per provare che, oltre a demolire, sono capaci anche a costruire.

 

Click Battersea Power Station for more blogs
See our Battersea Power Station project pages for more information and videos.
Or visit PlanA our general blog on urbanism, planning and architecture.

Spectacle homepage
Like Spectacle Documentaries on Facebook
Follow SpectacleMedia on Twitter

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Add to favorites
  • Current
  • email
  • Google Buzz
  • Identi.ca

Selling Battersea Power Station over stormy seas

Versione in Italiano

 

Why has the demolition of the south west chimney at Battersea Power Station apparently come to a stop?

The chimneys as they appeared on September 27th

The chimneys as they appeared on September 27th

Chimneys on October 21th

Chimneys on October 21st

Maybe the project has hit a technical snag- the chimneys are far more robust than the Battersea Power Station Development Company have wanted to admit – but it could also be that it is a barometer of the global economy and an indication of how vulnerable their business model really is. The business model of the current owners, like the previous ones, is a precarious one based on an ever increasing UK property market.

However the current economic climate is not looking good. The property market, according to most informed opinion, has plateaued and, in London, is in danger of going down.

Simon Rubinsohn, Chief Economist at Royal Institution of Chartered Surveyors, in an article about the UK’s Property Market says:

“As a result of the rebalancing in demand and supply, house price growth across the UK appears to be moderating […] prices are still projected to rise nationally over the next year and expected to increase by 2.6% on a 12 month view (compared with around 4% at the start of the year)”
The pound is getting stronger against currencies like the Euro (Milan and Paris are targeted cities for the Battersea Power Station Development Company), making London a less attractive investment and interest rates are going up.

(www.xe.com)

(www.xe.com)

The Labour Party, if they win the election in May 2015, which if due only to the metronomic pendulum swing of UK politics between the two major parties, is a distinct possibility, are promising a “Mansion tax” on all properties worth more than £2m (here is the Royal Institution of Chartered Surveyors’ opinion about the Mansion Tax).

Then there is the UK housing crisis, caused in large part by the selling of London property to foreign investors who have no intention of living in the properties they buy. Whoever wins the next election they need to address this and no solution will leave the property market untouched.

The Financial Times seems to support our worries in a recent article:

“Uncertainty around new property taxes, the strength of the pound on global currency markets and the introduction last year of a tax on homes held through companies have all contributed to the slowdown, according to those involved in trading properties.”

The same article gives us a quite impressive picture of the property market situation.

Some data about English Property Market, as published by Financial Times on

Some data about English Property Market, as published by the Financial Times.

Perhaps the emphasis on selling off-plan to overseas investors is because while there are plenty of rich in the UK  they might be a harder sell being better informed. Overseas investors, basing their judgement on futuristic artists impressions are unlikely to be aware of the smelly and disruptive waste processing plant with its hundreds of daily truck deliveries of reeking rubbish.

Our two faced Mayor of London Boris Johnson, ever the populist, plays it both ways, touring China promoting the London property market as an investment and for a local audience blaming that very market on the chronic housing shortage.

Boris Johnson at the launch of London City Island in Ballymore group sales event in Hong Kong, 18/10/2013) (from http://www.ballymoregroup.com/en-GB/news/41)

Boris Johnson at the launch of London City Island in Ballymore group sales event in Hong Kong, 18/10/2013) (from www.ballymoregroup.com)

It might be coincidence but in the week the Chimney demolition halted it was reported that the Chinese property bubble would burst soon, probably 2015, with catastrophic ripple effect on the global economy and international banking- possibly triggering a global crash.

As Bloomberg reported recently:

“The Chinese crash might make 2008 look like a garden party. As the risks of one increase, it’s worth exploring how it might look. After all, China is now the world’s biggest trading nation, the second-biggest economy and holder of some $4 trillion of foreign-currency reserves. If China does experience a true credit crisis, it would be felt around the world.
[…]
The potential for things careening out of control in China are real. What worries bears such as Patrick Chovanec of Silvercrest Asset Management in New York, is China’s unaltered obsession with building the equivalent of new “Manhattans” almost overnight even as the nation’s financial system shows signs of buckling. As policy makers in Beijing generate even more credit to keep bubbles from bursting, the shadow banking system continues to grow.”

This week the Battersea Power Station Development Company launched their overseas selling campaign of luxury apartments. Three of the cities targeted are Beijing, Shanghai and Hong Kong- all especially vulnerable to the vagaries of the Chinese economy.

The new owners are no different to all the previous owners – they are just better at PR and have better access to overseas markets. As before, despite the excellent PR hype suggesting that “at last work has started”, bolstered shamelessly by a “purse whipped” English Heritage, the only thing the current owners have actually done is demolish – they are taking down the chimneys, demolishing the precious, Grade II listed Victorian pumping station and removing the iconic listed cranes.

In other words the new owners are just flipping the Battersea Power Station. Selling today artists impressions of what MIGHT be built in the future.

We wonder what guarantees prospective buyers have that the off-plan flats they are buying will actually materialise. But then, having more money than sense, they probably do not care.

 

Click Battersea Power Station for more blogs
See our Battersea Power Station project pages for more information and videos.
Or visit PlanA our general blog on urbanism, planning and architecture.

Spectacle homepage
Like Spectacle Documentaries on Facebook
Follow SpectacleMedia on Twitter

 

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Add to favorites
  • Current
  • email
  • Google Buzz
  • Identi.ca

Battersea Power Station in vendita per mari perigliosi

English Version

 

Come mai i lavori di demolizione della ciminiera sudovest di Battersea Power Station sembrano essersi fermati?

The chimneys as they appeared on September 27th

Come apparivano le ciminiere di Battersea Power Station il 27 settembre scorso

Chimneys on October 21th

Le ciminiere di Battersea Power Station il 21 ottobre

Il progetto si è forse incagliato su qualche scoglio tecnico – le ciminiere sono molto più resistenti di quanto la Battersea Power Station Development Company sia disposta ad ammettere – o dipende dall’andamento dell’economia globale e si tratta, quindi, di un indicatore sulla vulnerabilità del piano finanziario del progetto? Il modello economico seguito dagli attuali proprietari, così come dai precedenti, è alquanto precario basandosi in gran parte sull’idea di un mercato immobiliare britannico in continua crescita.

Guarda caso le previsioni economiche attuali non guardano al bello. Il mercato immobiliare, secondo le opinioni degli esperti, è in stagnazione e, a Londra, corre il rischio di deflazione.

Simon Rubinsohn, Chief Economist del Royal Institution of Chartered Surveyors, in un articolo mercato immobiliare nel Regno Unito afferma:

“As a result of the rebalancing in demand and supply, house price growth across the UK appears to be moderating […] prices are still projected to rise nationally over the next year and expected to increase by 2.6% on a 12 month view (compared with around 4% at the start of the year)”

La sterlina sta diventando sempre più forte nei confronti dell’Euro (Milano e Parigi sono obbiettivi per il mercato della Battersea Power Station Development Company), rendendo Londra una città meno attrente in cui investire, con tassi di interesse in crescita.

(www.xe.com)

(www.xe.com)

Il partito laburista, in caso di successo alle elezioni generali di Maggio 2015 – possibilità dovuta al fatto che l’alternaza tra i due maggiori partiti della politica britannica è inevitabile come il movimento di un metronomo – ha promesso la cosiddetta “Mansion Tax”, una tassazione aggiuntiva su tutti gli immobili di valore superiore a 2 milioni di sterline (qui è possibile leggere l’opinione del Royal Institution of Chartered Surveyors sulla Mansion Tax).

Poi c’è la crisi abitativa, causata in gran parte dalla vendita di immobili londinesi a investitori stranieri, i quali non hanno nessuna intenzione di vivere nelle case che comprano. Chiunque vinca le prossime elezioni dovrà mettere mano a questo problema, e qualuque possibile soluzione avrà inevitabili ricadute sul mercato immobiliare.

The Financial Times, in un recente articolo, sembra supportare le nostre preoccupazioni:

“Uncertainty around new property taxes, the strength of the pound on global currency markets and the introduction last year of a tax on homes held through companies have all contributed to the slowdown, according to those involved in trading properties.”

Lo stesso articolo è corredato da una fotografia impressionante della situazione che sta attraversando il mercato immobiliare.

Some data about English Property Market, as published by Financial Times on

Dati riguardanti il mercato immobiliare britannico, pubblicati su The Financial Times.

Può darsi che l’enfasi riposta sui piani di vendita a investitori stranieri, quando c’è abbondanza di ricchi anche nel Regno Unito, sia dovuta al fatto che gli investitori locali siano più difficili da convincere visto che sono meglio informati. Gli investitori stranieri, che fondano i loro giudizi su impressioni artistiche e futuristiche, sono probabilmente inconsapevoli dell’olezzo disgustoso proveniente dall’impianto di smaltimento dei rifiuti presente nell’area, con le centinaia di camion che quotidianamente vi riversano fatiscenti carichi d’immondizia.

L’eclettico Sindaco di Londra Boris Johnson, anche nella sua versione più populista, fa il doppio gioco: va in tour in Cina per promuovere investimenti nel mercato immobiliare londinese, mentre al pubblico londinese indica proprio questo modello di mercato come causa della cronica mancanza di abitazioni.

Boris Johnson at the launch of London City Island in Ballymore group sales event in Hong Kong, 18/10/2013) (from http://www.ballymoregroup.com/en-GB/news/41)

Boris Johnson interviene al lancio delle vendite del London City Island, in un evento organizzato dall’impresa Ballymore il 18 ottobre ad Hong Kong. (Fonte: www.ballymoregroup.com)

Può darsi che si tratti di una coincidenza, ma nella stessa settimana in cui la demolizione della ciminiera si è fermata sono stati pubblicati resoconti che indicano come la bolla immobiliare cinese stia per esplodere presto, forse già nel 2015, con catastrofiche ricadute sull’economia globale e sulla finanza internazionale – con la possibilità di innescare una crisi globale.

Come riportato recentemente da Bloomberg:

“The Chinese crash might make 2008 look like a garden party. As the risks of one increase, it’s worth exploring how it might look. After all, China is now the world’s biggest trading nation, the second-biggest economy and holder of some $4 trillion of foreign-currency reserves. If China does experience a true credit crisis, it would be felt around the world.
[…]
The potential for things careening out of control in China are real. What worries bears such as Patrick Chovanec of Silvercrest Asset Management in New York, is China’s unaltered obsession with building the equivalent of new “Manhattans” almost overnight even as the nation’s financial system shows signs of buckling. As policy makers in Beijing generate even more credit to keep bubbles from bursting, the shadow banking system continues to grow.”

Questa settimana la Battersea Power Station Development Company ha portato i suoi appartamenti di lusso in una campagna di vendite in giro per il mondo. Tre città raggiunte dalla campagna sono Pechino, Shangai e Hong Kong, tutte particolarmente esposte agli alti e bassi dell’economia cinese.

I nuovi proprietari non sono molto diversi da quelli precedentivi – sono solo più bravi in PR e hanno un migliore accesso ai mercati internazionali. Come in passato, nonostante gli eccellente battage pubblicitario sostenga che “finalmente i lavori sono iniziati”, sotenuto senza pudore dall’English Heritage, l’unica cosa che i nuovi proprietari hanno fatto in realtà è stato demolire – stanno abbattendo le ciminiere, demolendo la deliziosa e protetta Victorian pumping station e rimuovendo le iconiche (e protette) gru.

In altre parole i nuovi proprietari stanno facendo il loro gioco con la Battersea Power Station. Vendono oggi immagini fantastiche di ciò che POTREBBE essere costruito in futuro.

Ci chiediamo che tipo di garanzie vengano fornite agli eventuali acquirenti stranieri circa il fatto che gli apparatamenti che stanno comprando sulla carta vengano effettivamente realizzati. Alla fine, avendo costoro più soldi che giudizio, forse gli non importa più di tanto.

Click Battersea Power Station for more blogs
See our Battersea Power Station project pages for more information and videos.
Or visit PlanA our general blog on urbanism, planning and architecture.

Spectacle homepage
Like Spectacle Documentaries on Facebook
Follow SpectacleMedia on Twitter

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Add to favorites
  • Current
  • email
  • Google Buzz
  • Identi.ca

Olympic regeneration exposed in the Journal for Northeast Issues

Journal for North EastFrom this week the new issue of the Journal For Northeast Issues edited by Projekgruppe, will be on sale. The specialised periodical features a reprint of an article by Mark Saunders  Fish and Freedom Fries on London’s Olympic regeneration myths and realities.

In July 2006, London rejoiced at winning the bid to 2012 Olympic Games. But who is really celebrating? Mostly urban planners, who have carte blanche to carry through a programme of urban reconstruction otherwise beyond their wildest hopes.

In London, Olympic visions tie in nicely with existing policies of regeneration. Made digestible using labels such as “mixed tenure” and “social diversity”, regeneration is effectively a policy of interference with existing social structures.

Documentary filmmaker Mark Saunders describes, how in East London, the structures being replaced are precisely those that do not coincide with the private interests behind the Olympic bid.

The Journal For Northeast has been published by Hamburg based Revolver Publishing since November 2007, under the label “For now, let’s make our paper as a living magazine!”

A release event will take place on 9 December in Hamburg. In early 2011, related journal events will take place in Budapest, Vienna and Copenhagen.

Click London Olympics for more blogs
See our Olympics project pages for more information and videos.
Or visit PlanA our general blog on urbanism, planning and architecture.

Spectacle homepage
Befriend Spectacle.Docs on Facebook
Follow SpectacleMedia on Twitter

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Yahoo! Buzz
  • Twitter
  • Google Bookmarks
  • Add to favorites
  • Current
  • email
  • Google Buzz
  • Identi.ca