Sime Darby Property Berhad (SimeProp), through its wholly-owned subsidiary Sime Darby Property (Hong Kong) Limited (SDPHK), has entered into an interest-bearing loan agreement amounting to £10 million (approximately RM58 million) to support the ongoing development of the Battersea Power Station project in London.
The loan, structured as a shareholders’ advance, will be used to finance future phases of the high-profile mixed-use development, with the funding extended to Battersea Project Holding Company Limited (BPHCL), the entity responsible for managing the project. SDPHK currently holds a 40 percent equity interest in BPHCL.
The shareholders’ advance carries a tenure of five years. Interest on the loan will accrue at the Sterling Overnight Index Average (SONIA) rate plus 1.5 percent per annum. The facility will be funded through SimeProp’s existing financing lines.
The company stated that it does not anticipate any material risks arising from the loan, other than the general market and operational risks inherent in property development activities within the United Kingdom.
-The Star
