Tag Archives: battersea

Storms brewing over REO personnel?

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You’d think that with debts up to their eyeballs, and Wandsworth Borough Council’s decision on planning permission still in the balance, the owners of Battersea Power Station would have enough to worry about.

But now new allegations have arisen in the Irish media about certain figures involved in REO, the property firm that owns the site.

The Irish Independent has reported that Willie McAteer, formerly finance director of Anglo Irish Bank, which loaned money to REO, also owns a stake in the company.

McAteer was also arrested and questioned by the Irish fraud squad in March 2010 following his resignation from the board of bailed out bank Anglo Irish in 2009.

Meanwhile accusations of irresponsible behaviour are in the air directed at Johnny Ronan, one of the owners of Treasury Holdings, REO’s largest stakeholder, with an opinion piece in the same newspaper accusing him of reckless spending. Mr Ronan’s children’s ‘lavish birthday parties…costing hundreds of thousands of euro’ come under fire.

This only adds to speculation on the propriety of his behaviour – in March the Irish Times reported that he was ‘standing down’ from his position for a few months, following embarrassing revelations about his love life.

It seems Mr Ronan had been embroiled with arguments with a former girlfriend after being found taking extended lunches and private jet trips to Morocco with a former Miss World.

Not responsible behaviour, some might say, for a man whose company has debts funded by the Irish taxpayer to the tune of more than a billion euro.

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How much is Battersea Power Station worth?

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Detail of a slide from REO's presentation to the Battersea Power Station Community Group

Even if you take the question in its strict financial sense, it’s not as simple as you might think.

Property consultants King Sturge valued the site at £388m in February of this year. But read the small print and you see that this value depends on some factors which are still in flux: the obtaining of planning permission, the extension of the Northern line to Battersea, and the availability of funding for REO’s huge debts.

To take the first issue of planning permission, that’s a decision that’s going to be made by Wandsworth Borough Council later this summer.

And it might not be as cut and dried at the developers hope: several groups are opposing the plans, including the Kew Bridge Engines Trust, 20th Century Society, Battersea Society, SAVE, and the Greater London Industrial Archaeology Society. The Victorian Society have also made a formal written objection and recorded an interview with Spectacle on their attitude towards the developers’ plans.

Even supposing the planning proposal is given the go-ahead, it’s unclear how valuable the site will be, given REO’s reluctance to say what proportion of the site will be made up of affordable housing.

Even now, when the site has none of the “essential” planning permission in place, the valuation of £388m suggests a value-per-acre of £10m. A little high, perhaps, given that Capital & Counties exhibition centre in Earls Court, which already generates income and has ready transport links, is valued at £6m per acre.

This second point of transport links, and the extension of the Northern line to Battersea, is also up for discussion.

No public money is being put towards it from either the mayor’s office or the Department of Transport, so it looks like it would have to be privately funded. The REO’s estimated cost at the moment is £200m – seen by some as a hopelessly optimistic figure.

And even if the price of building the tube link remained on target, it’s uncertain where REO would find £200m, given the company’s unfortunate financial position and hefty debts.

It’s hard to see how a valuation of the Battersea Power Station site, and of its worth to the developers, can be at all conclusive. £388m is an attractive figure for a company mired in debt, but to anyone else it looks optimistic at best, and at worst completely unrealistic. It is also £12m less than REO paid for the site.

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Battersea Power Station owners deep in debt

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REO co-owner Rob Tincknell

Property firm REO, whose portfolio includes Battersea Power Station, owes millions of euro to its banks, and to the Irish taxpayer.

The company owes a total of €2bn to its banks. This includes nearly €1bn owed to Nama, Ireland’s National Asset Management Agency – set up by the Irish government to take on the debts of banks bailed out in the financial crisis.

With a property portfolio valued at €1.3bn (including the Battersea site, whose valuation is problematic in itself), the company’s debts now far outstrip its assets.

That’s not the end of REO’s problems: it recorded a pre-tax loss of £900m for the 14 months to February 2010. The announcement of those accounts, in June this year, caused a 50% fall in the company’s share price, taking it down to just 8 pence per share, and a market value below £40m. The company is not in good financial health.

So it’s perhaps not surprising that REO are looking to separate the potentially lucrative Battersea Power Station site from the company as a whole. They hope to draw off the property into a separate company, and list it on the stock market before the end of the year.

Investment partners are being sought to help fund the project, with international property groups and Middle Eastern wealth funds thought to be expressing interest.

But these grand plans could be brought to a halt if Wandsworth Borough Council decide not to grant planning permission. Elsewhere on the Spectacle Blog you can find out more about the historical preservation groups who are opposing the developer’s plans for the site.

You can also watch our interview with Alex Baldwin of the Victorian Society and other clips about the power station in the Spectacle video archive.

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Bulldozing Battersea Water Pumping station for profit

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Listed but not protected

Battersea Water Pumping Station is Grade II listed but not protected.

The usual safeguards against demolition of a heritage building are under scrutiny as REO, “developers” of Battersea Power Station, seek to bypass the criteria for demolishing a listed building and bulldoze the Victorian Battersea Water Pumping Station. Under new policy guidelines, REO will no longer need to administer the test criteria before destruction of a heritage site. REO state they “are not seeking to justify demolition on the basis of Policy HE9.2(ii)” Conveniently, REO is not in violation of policy and in effect giving them the right to proceed without obstacle.

A summary of the criteria for demolition under Policy HE9.2(ii) of PPS5 are to prove they are unable to:

  1. find a “new use” for the building
  2. maintain existing building  use
  3. find a charity group interested in the building
  4. get a local group willing to take on the building
  5. market the building – someone could use it for alternative means

The community group Battersea Power Station Company has in fact offered to purchase the building for a nominal sum for a community centre, the building is described as “fairly robust and would be restorable if somebody wanted to.” However, under Policy HE9.2(i), REO claim they will not need to go through the test criteria listed. REO claim they can reject applications for the building arguing “the requirement to market the property is not engaged, since that only relates to Policy HE9.2(ii) and not to Policy HE9.2(i).”

Furthermore, under the new policy, REO “justifies the demolition of the water pumping station by reference to Policy HE9.2(i) of PPS5. Our position is that the demolition of the pumping station is justified by the delivery of the substantial public benefits inherent to the regeneration scheme [REO] are promoting, that outweigh the building’s loss, and that retention of the building would compromise the delivery of the comprehensive scheme.”

REO’s superfluous argument that the water pump station must be demolish or it will jeopardize the entire regeneration project for this area remains unfounded.

In fact, there are approximately 20 hectares of land for redevelopment.  It is perplexing that the developers are not willing to revise their plans for redevelopment to include the heritage site. Alex Baldwin of the Victorian society confirms that the demolition of the site would be a “considerable loss and unnecessary waste of a valuable historic building.” She goes on to say that the Battersea Water Pumping station is “integral to the redevelopment and regeneration of the area.  Demolition would degrade the area of the site and call into question the listing process as a whole.  The developers have not fulfilled the testing criteria for demolition, nor have they gone through re-qualifying their scheme for regeneration.”

Examples of successful redevelopment of historical sites can be found in Nottingham, Crossness in East London, Abbey Mills, and Dean Clough Mills in Halifax. The rejuvenated historical sites have revitalized the community and the same could be done for Battersea. Governments should include historic sites in the redevelopment schemes and not deem them mutually exclusive to the social and economical regeneration linked to a community.

By proceeding with the redevelopment proposed by REO, a precedent is set forth in how to undergo regeneration schemes in London. It is not good practice to use this as a blank slate for developers to demolish historical sites for the profit of a selected few. It is imperative to uphold government policy regarding the demolition of these irreplaceable iconic symbols. Once they are gone, we will never be able to get them back.

Quit putting a goddamn dollar sign on every fucking thing on this planet – Bill Hicks

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Treasury Holdings Northern Line Battersea Extension Plans

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As we have mentioned here on the Spectacle blog previously; owners of Battersea Power Station, REO (Real Estate Opportunities), have some illustrious plans to bring the Northern line to the Power Station. The project has received support from the mayor’s office but no public money is being put towards it from either the mayor’s office or the Department of Transport. This extension would serve to sever the two branches of the Northern Line so that only Bank services would travel to Morden and Charing Cross services would end in Battersea. As it is very few Charing Cross branch trains travel past Kennington. Far from benefiting the local community, this extension is effectively an attempt to build a private station for a private development with little to no concern for the local people.

In typical architectural consultation manner, they’ve produced 4 proposals and asked people to choose which one they believe will be the most beneficial. One of these maps is reproduced below and they can also be found over at London Reconnections along with some other useful information about the extension plans.

As can be observed on the below map taken from OpenStreetMap, REO’s consultation map conveniently crops Victoria station and forgets to label Queenstown Road and Battersea Park stations. The South London Line which runs from Victoria and London Bridge passes through Battersea Park station thus the Power Station site is already connected to these two major stations. Additionally Queenstown Road station, five minutes walk from the Power Station site, is one stop away from Vauxhall Station. With these two connections to major stations very nearby, surely extending the tube to the area is a bit over the top? Tunneling is not a cheap process after all.

Another proposal suggests extending the Northern Line to Vauxhall en route to the new Battersea station, but as we mentioned, Vauxhall is already easily reachable from Queenstown Road station and is in fact actually quite a crowded station already. The other two proposals suggest an intermediary station in Nine Elms, either around New Covent Garden Market or at the site of the current Sainsburys. The intention here is to serve the Nine Elms opportunity area and the new planned US Embassy (allegedly their 12 storey embassy building requires some underground facilities). However a few more buses in the area could easily serve this purpose or even a small tram service which would be far cheaper than costly tunneling. Besides, Vauxhall is really only a short walk away.

The consultation has included a Freepost Questionnaire for anyone who would like to inform Treasury/REO how they feel about the proposals. It is also worth considering that Treasury Holdings are conducting the consultation themselves and likely have no obligation to share the results. Either way, how would the public know that any published results of the consultation would match up with the actual results?

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Local community want to Purchase Battersea Water Pumping Station

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Owners of Battersea Power Station, Treasury Holdings/ REO, have submitted an application (ref 2009/3578) to demolish Grade II listed Battersea Water Pumping Station.  Battersea Power Station Company, a not for profit local organisation set up by members of the Battersea Power Station Community Group, have sent Treasury Holdings/ REO a letter expressing an interest in purchasing the building for local community and heritage use

A copy of the letter can be seen below, if you support this letter please comment below and directly to Wandsworth Borough Planning department

8th June  2010

Mr Jeremy Castle
Treasury Holdings
Battersea Power Station
Kirtling Street
London SW8

“Dear Jeremy,

BATTERSEA WATER PUMPING STATION

I am writing concerning your application submitted last year for listed building consent (ref 2009/3578) to demolish Battersea Water Pumping Station.

Members of Battersea Power Station Community Group set up this company in 2002 as a not for profit organisation to carry out useful work in the Queenstown ward, one of the most socially disadvantaged areas of the London Borough of Wandsworth. The company has broad objectives, including: “The preservation of buildings or sites of historic, architectural or industrial importance, in particular Battersea Power Station and Battersea Water Pumping Station”.

In pursuit of this objective, we wrote to Wandsworth Council in January to object to your application. (Our letter of 19th January.) We have also written to English Heritage. We don’t know the outcome of Wandsworth and English Heritage’s deliberations at this stage.

In considering this application however, both organisations will have to take account of government guidance on demolition containing in the new Planning Policy Statement 5. As you know PPS 5 includes guidance for situations where the loss of a “heritage asset” is proposed. This is contained in paragraphs HE9.1 to HE 9.5, requiring alternative uses to be considered, and for charitable or public ownership to be considered as well.

Paragraph HE 9.3 specifically says “… local planning authorities should require the applicant to provide evidence that other potential users have been sought through appropriate marketing and that reasonable endeavours have been made to seek grant funding for the heritage asset’s conservation and to find charitable or public authorities willing to take on the heritage asset.”.

To assist you in this process therefore, we confirm that we do wish to acquire Battersea Water Pumping Station from you. We are willing to raise funds to repair the building, using the Architectural Heritage Fund, the Heritage Lottery Fund and other local sources. Indeed on 10th May, BPSCG members attended a seminar at the HLF about funding for Industrial, Maritime and Transport Heritage projects in London.

We saw in our recent visit to the Pumping Station on 11th March (which you kindly arranged for us) that the brick structure of the building is fundamentally sound. The building is eminently reusable in any number of socially productive ways, that would far outweigh the nominal benefits of building another hotel, office building, or shopping mall on this area of the site.

Clearly there have been years of neglect. The guidance note accompanying PPS 5 (paragraph 96) is clear that the purchase price should be reduced to take account of a backlog of any repairs. We are therefore wiling to take the building from you for a sum of £1. We would also ask for a small donation from you to assist with emergency repairs, and to serve as matched funding in any approach to funding bodies.

We also consider that the narrow strip of land extending from the pumping station to the river should stay with the pumping station to facilitate river related use such as a boat house. The building was separately owned by the water board until the 1980’s on a plot of land with a river frontage. We feel that building and its site should be preserved intact. This strip is at the north east corner of your site and we don’t see that its forfeiture would in be to the detriment of your wider plans. Indeed, it could serve as a useful buffer between your site and the refuse transfer station.

Aside for the inherent industrial and historic importance of the building, that overwhelmingly justifies its retention, there are many social benefits to our company taking over this building. For instance in enabling people from the estates on the south side of Battersea Park Road to take part in river related activity of all kinds.

Clearly bringing this building back into use on the short to medium term will also give positive signals about the viability of the site as a whole to potential investors. They will see that things are actually happening, rather than the procrastination and delay which has become the norm. This can only be in your interest as well.

I hope you find the foregoing of interest. Perhaps we discuss this proposal in more detail when we meet on 14th June, which I am very much looking forward to.”

Yours sincerely,

Keith Garner
Director

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Battersea Power Station & Olympics 2012 – Legacy, Land Grabs and Liberties

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Olympic Blues

Olympic Blues

BATTERSEA POWER STATION AND OLYMPICS 2012: LEGACY, LAND GRABS AND LIBERTIES

Mark Saunders talk and videos

Wednesday, 02 June 2010 17:30

Room 517 (5th floor), Bartlett School of Planning, UCL, Wates House, 22 Gordon Street, London WC1H 0QB.

Directions

More info on London Planning Seminars

For more info:
On the Olympics:
Project: http://www.spectacle.co.uk/London-Olympics-2012
Blog: https://www.spectacle.co.uk/spectacleblog/category/olympics-2012/

On Battersea Power Station:
Project: http://www.spectacle.co.uk/Battersea-Power-Station
Blog: https://www.spectacle.co.uk/spectacleblog/category/battersea-power-station/

National Treasure kills Beatle?

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Battersea Power Station

You couldn’t make it up.

Former Wings frontman Paul McCartney is holding a bring-me-back-my-youth gig in the belly of the roofless Battersea Power Station in order to fund raise for a new roof for the Old Vic Theatre.

Multi-millionaire Macca is dusting off his guitar in a bid to raise money for the theatre, but for him to play inside a structure which REO, the owner, claim is so fragile and so dangerous that the chimneys must be removed for safety reasons, begs the post-ironic question: when will the power station have an honorary gig at the Old VIc to provide it with a roof of its own?

Despite Macca’s considerable fall from grace since his hey-day (his Bromance with Vlad the Impaler Putain in Red Square, receiving guided tours of the Kremlin and playing a personal concert for the Russian dictator), presumably Battersea Power Station has been chosen for the venue as a silent homage to its rock’n’roll image, most notably gracing the cover of the 1976 Pink Floyd album, Animals. The fact that Macca is being granted permission to perform there must mean that the disused power station is not as much of a threat to life and limb as developers, politicians, and pen-pushers (all with vested interests) would have the public believe.

Surely such a National Treasure has more to give as a cultural icon? And Battersea Power Station isn’t in such bad shape bad either.

Hope Sir Moolah wears a hard hat.

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Battersea Forum Q&A Available to Watch

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On Wednesday 31s March the DRCA Community Centre hosted the presentation of REO / Treasury Holdings‘ planning application for Battersea Power Station.

As part of our ongoing Battersea Power Station project, we have edited together the charged question and answer session between the planning director, Jeremy Castle, and members of the local community which you can watch on our Battersea Power Station archive. Topics raised included affordable housing, schools, parking, fencing and the iconic chimneys.

The current plan, which you can read more about at our Battersea Power Station blog, includes the construction of 3,700 luxury flats, a riverside park, a hotel, and a new tube station surrounding the Grade II* listed Power Station which could itself become a retail centre. Wandsworth Council are set to make a decision in July.

Cameron Braves ‘Dangerous’ Battersea Power Station for Manifesto Launch

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David Cameron’s decision to invite little old you and me to run the country at the big boys’ table at Battersea Power Station was no accident, because you see, he wants to FIRE UP the nation. Y’know, like the station. Because it’s stopped working. FIRE UP the power because the country is derelict and…ok he wants to REGENERATE the station, no wait, I got that wrong, regenerate the NATION, because England is like a dilapidated…oh I don’t know why I bother.

Anyway, if he was going to recklessly bounce loaded metaphors around the inside of the power station he should have been wearing a hard hat – that structure is dangerously unsafe according to REO. At least that’s what was told to Battersea Power Station Community Group, unless they were to have the required clout which presumably comes with a ‘no topple’ guarantee.

The key point of all this is that Cameron’s ability to bypass this regulation demonstrates that REO’s persistent claims that the chimneys must be pulled down due to their perceived danger is most definitely a falsehood, and it highlights the superficiality of their concerns over safety at the station which very clearly are being raised as an excuse for their desired re-development. Once the chimneys are down they will never be put back. You can read more about it here in Spectacle’s Battersea Power Station blog.