The £400 million bid from the two property companies is for a "multi-use real estate regeneration project", with a commitment to build a tube station which will connect Battersea Power Station to the Northern Line. It would also preserve the iconic four towers of the former power station.
The bid beat multiple offers, including one from Chelsea Football Club to turn the derelict power station into a 60,000-seater stadium.
In a statement, Batttersea Power Station’s administrator Ernst and Young said: "Following an extensive global marketing campaign, undertaken by Ernst and Young Real Estate Corporate Finance and Knight Frank LLP, the joint administrators are pleased to announce that on Wednesday 6 June 2012 they entered into an exclusivity agreement with SP Setia and Sime Darby."
It added: "[We] are working towards a timely exchange and completion of the site and associated land."
SP Setia and Sime Darby now have four weeks to conduct due diligence and investigations and negotiate the contract to buy the venue.
It is unclear whether the bid includes plans for event space at the former power station, which currently holds events in its Boiler House space run by Industri Management.
Industri told Event it was keen to continue running events at the Power Station and would discuss this with any new owners. Laura Bayford, director of Industri, said: "It’s business as usual and are going to continue to focus on meeting our customers’ needs."
Industri usually takes bookings for up to six months in advance for the venue. "People don’t have anything to worry about and we are still taking bookings," said Bayford. "Events are a revenue generator for the site and whatever happens to it, we are optimistic."
As reported in Event, the power station went into administration in December 2011 after redevelopment plans from Real Estate Opportunities (ROI) – including housing and an event space in the grounds – fell through. All Christmas parties booked at The Boiler House in 2011 were cancelled and some were moved to other locations.
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