Skanska preferred for Battersea Power Station deal

Skanska has emerged as the preferred contractor for a £600 million (€753 million) UK project regenerating the Battersea Power Station building in London.

The company had faced competition from firms including Balfour Beatty for the scheme, which will revive the iconic riverside building – that had been left derelict for decades.

Forming part of the mixed-use housing and retail venture valued at a total of £8 billion (€10.5 billion), the complete site spans 42 acres and will offer 1.07 million m² of commercial space. The grade II listed power station building is to become a shopping centre with additional arts spaces.

This will include 115 stores and restaurants, as well as a 9,144 m² fashion hub aimed at graduates. The regenerated site is being designed by Wilkinson Eyre architects.

It is being completed in several phases, with the power station being the second stage. Plans for the initial phase, known as Circus West, include 250 retail stores, which will be completed by 2016.

Within the third section of the project, which have been put forward by the Malaysian-based business consortium that bought the site for £400 million (€502 million) in 2012, are a total of further 50 stores and restaurants. These are planned to open in 2020.

There are also proposals to create a new 2,000-seater riverside events venue within the revamped power station. The proposed completion date of the entire scheme is 2025.

Speaking on the site’s regeneration, Rob Tincknell, CEO of Battersea Power Station Development Company, said, “The Power Station is unique, having a very powerful existing brand profile.

"Together with other leading global retail and business brands, we believe this combination will create a truly world-class destination and a significant addition to the fabric of London.”