Sime Darby Property, SP Setia deny wrongdoings in Battersea project

Last update: 13/06/2018

KUALA LUMPUR, June 13 (Bernama) -- Sime Darby Property Bhd (Sime Darby) has clarified that the site acquisition and the subsequent costs of the Battersea Power Station (BPS) development were fully funded by a combination of equity from the shareholders, together with development loans.

In a joint statement with SP Setia Bhd today, Sime Darby said that the loans were provided on commercial terms by a  group of nine Malaysian and international lenders.

"More than 60 per cent was provided by the international lenders," Sime Darby said, simultaneously refuting any allegations of wrongdoing regarding the London-based project.

The property developer also claimed that the 458 million British pounds (£1=RM5.34) development loan for phase one has been fully repaid ahead of schedule.

"The initial capital invested into the project by the developers and the profit from the first phase is now being reinvested into developing the subsequent phases," it said.

Earlier, the Pakatan Harapan government had raised concerns on the BPS deal and other major property investments in the United Kingdom, and intended to look into those deals and renegotiate if there was any wrongdoing involved.

At 11.49 am, SP Setia's shares was up four sen to RM2.99, with 4.63 million shares traded while Sime Darby Property's shares rose four sen to RM1.25 with 2.92 shares changing hands.