Chelsea bid for NAMA-controlled Battersea site

Friday 04 May 2012 15.20
Chelsea hope to build a 60,000 seat stadium at the site, the club said today.
Chelsea hope to build a 60,000 seat stadium at the site, the club said today.

Chelsea have submitted a bid to acquire the Battersea Power Station site for the construction of a 60,000 seat stadium, the club announced today.

The site is owned by Treasury Holding's Real Estate Opportunities (REO) but is under the control of NAMA and Lloyds bank.

The purchase of the site was originally funded by borrowings from Lloyds and Bank of Ireland.

Two days ago Treasury Holdings launched legal action against NAMA to seek compensation over its decision to appoint receivers to the site.

Treasury has accused NAMA of rejecting offers to acquire loans without sufficient consideration and making a decision to call in the receivers without notifying the company for over a month.

NAMA and Lloyds rejected a £262m bid for the Battersea site from a Malaysian firm in November.

A month later, Ernst & Young was appointed administrator to four companies over £325m of debt linked to the site.
 

It follows Treasury Holdings challenging the constitutionality of the legislation governing NAMA.
 

A £5.5 billion sterling plan for homes and offices based around the derelict building was approved by London's Wandsworth Council in November 2010.
 

The 38-acre Battersea site has seen repeated redevelopment attempts fail in the past three decades since the red-brick power station closed and whose four towering chimneys are a feature on the London skyline.