Chelsea have submitted a formal offer to purchase the site of Battersea power station which, if accepted, could lead to the club leaving Stamford Bridge and the development of "one of the most iconic football stadiums in the world" at a cost of more than £1bn.
The bid, made in conjunction with the club's property development partner Almacantar, was lodged with Ernst & Young on Friday ahead of the deadline for the first round of offers to be presented to the administrators for the 39-acre site at Battersea Nine Elms. Chelsea are cautious over their prospects and have stressed no final decision has been made to leave their home of 107 years but, with redeveloping Stamford Bridge restrictive in terms of cost, and few suitable available areas within a three-mile radius, they recognised the availability of the site on the south bank of the Thames as an opportunity that could not be ignored.
The Grade II* listed former electricity power station was put up for sale earlier this year following the collapse last November of an Irish-backed scheme to revamp the area, with the site having been valued at around £500m a month earlier. That price could have fallen since, given the economic climate, though Chelsea have not revealed the size of their bid. Regardless, the site will be sold with the planning permission, secured from Wandsworth council in 2010 by the former owner Treasury Holdings, for homes, offices, hotel, retail and leisure developments, and with the associated commitments.
That planning permission requires full restoration of the power station, at an estimated cost of £150m, which Chelsea would attempt to incorporate into the design for a 60,000-seater stadium, with all four chimneys and wash towers, along with the Grade II* listed west turbine hall and control room, to be retained in their original locations. The architect Rafael Viñoly has collaborated with the practice Kohn Pedersen Fox on the plans put forward by Almacantar, and Chelsea's initial proposal includes a 15,000 all-seated one-tier stand behind the south goal, with the stadium effectively built within the familiar brickwork shell of the power station.
There is optimism within the club's hierarchy that their proposals would maintain the essential character of the building, which was built in the 1930s and ceased generating electricity in 1983, currying favour with heritage authorities. The club has also pledged to make a "significant contribution", believed to be around £200m, towards the Northern Line extension from Kennington via Nine Elms to connect the proposed newstadium to the London Underground network. The development would also include a town centre with street-level retail units, housing and offices. Construction would be likely to take up to four years.
This is likely to prove the start of a lengthy and competitive tendering process, with Ernst & Young having been encouraged by "a strong level of interest" in the site. "We are not the only interested party and there is no certainty that we will be successful," said a Chelsea spokesman. "We also appreciate that we have many significant hurdles to address, including winning the support of our fans, the Chelsea Pitch Owner shareholders and local Wandsworth residents, as well as securing the approval of Wandsworth council, the Greater London Authority and heritage authorities."
Wandsworth council has no objections in principle to the football club moving into the borough and has been encouraged by the level of interest in what it claims is "the biggest development opportunity in central London". Ravi Govindia, leader of Wandsworth Council, said: "Any new owner will need to work within the existing planning framework for Nine Elms, which includes the delivery of the Northern Line Extension. This is the key to creating 25,000 new jobs and unlocking billions in growth and new inward investment."
Chelsea have made no secret of their desire to increase match-day revenues and have been frustrated by the reality that Stamford Bridge is hemmed in on all sides with further redevelopment deemed unviable economically. While they continue to seek sponsors interested in taking up naming rights for their current home, they have also scrutinised various sites within their prescribed three-mile radius and retain an interest in an area at the northern end of Earl's Court, whose owners Capital & Counties plc are currently pursuing residential and commercial developments of the site, and also White City.
Funding the Battersea project would initially require the sale for redevelopment of Stamford Bridge – potentially for up to £400m – meaning the club will still need to convince shareholders in CPO, the fan-led group that owns the pitch, the turnstiles and the land upon which the arena's four stands are built, to sell the freehold for the current stadium. They failed to convince CPO at an extraordinary general meeting last October and, at some stage in the future, will re-visit that issue with SayNoCPO insistent that "the viability of redeveloping Stamford Bridge is still a very relevant issue".
Yet the proposals to move to Battersea Power Station are at least recognised as exciting by many supporters who had previously been resistant to a move. "There will still be some fans who don't want to move at any costs, but the sense if people may look more favourably on these proposals," said Tim Rolls, a CPO shareholder and season ticket holder. "Certainly, the description of the plans, with the chimneys to be retained, does sound spectacular."
