Malaysian property tycoons SP Setia and Sime Darby have won the right to redevelop Battersea Power Station, beating Chelsea’s bid to acquire the site.
The successful bid is believed to be worth £400m and sets out plans for a complete revamp of the area on the south bank of the Thames, including an extension of the Northern Line of the London Underground.
The power station has been closed for three decades, during which time a number of planned redevelopments have come to nothing.
The site came back on to the market last year after the proposed building of shops, homes and offices fell through.
A Chelsea statement read: “We are disappointed not to be selected as the preferred bidder for Battersea Power Station.
“We believe we can create an iconic and architecturally significant stadium on the site in a scheme which is commercially viable and of great benefit to the Wandsworth community and London generally.
“We have been clear throughout this process that Battersea is one of a limited number of options the club is considering.”
Chelsea announced earlier this month they had submitted a formal offer to Wandsworth Council to buy the land ahead of a possible move from Stamford Bridge – the Blues’ home for the last 107 years.
The club’s relocations plans are complicated by a disagreement with Chelsea Pitch Owners (CPO), a fan-owned company which acquired the Bridge’s freehold in 1997 to protect it from developers.
An attempt by the club to buy the freehold back in October was rejected by CPO’s shareholders.