Kuala Lumpur, 2025 — Analysts at Maybank Investment Bank believe that Battersea Power Station’s retail and leisure hub — known as The Power Station (TPS) — is poised for a significant rental increase in the near term. This upward movement in rental rates is expected to enhance returns for Malaysian institutional investors including Permodalan Nasional Berhad (PNB) and the Employees’ Provident Fund (EPF), who hold substantial stakes in the site.
Battersea Power Station, an iconic redevelopment project in London that features retail, dining, office, and residential components, has already demonstrated strong visitor traffic and occupancy levels. With over 90% of retail and leisure space now let and new openings regularly added, Maybank IB projects that rental growth will accelerate as demand for premium retail space increases. The firm highlights that rising footfall and growing appeal among international and domestic brands are likely to translate into higher rents and stronger cash flows for stakeholders.
The rental surge at Battersea is set against a backdrop of strategic ownership by PNB and EPF. Their investment in Battersea places them among the long-term beneficiaries of rising premium property values overseas, foreign income streams, and diversification of asset base. With London’s retail and commercial property market showing signs of recovery and rental growth following periods of inflation, rising interest rates, and post-pandemic adjustment, institutions like PNB and EPF are expected to see improved returns on their Battersea investment.
Maybank IB’s analysis also notes risk factors, including potential rental sensitivity to macroeconomic shocks, currency fluctuations, and changing consumer spending patterns. However, the combination of strong brand presence in the retail mix, heritage appeal of the building, and the location in London’s global retail ecosystem gives Battersea a competitive edge.
For Malaysian investors and institutions, the shifting dynamics at Battersea highlight how well-placed foreign real estate investments can augment domestic portfolios — offering income and asset appreciation. In particular, for the EPF and PNB, the potential rental growth could help offset inflationary pressures at home and strengthen income streams from international properties.
