• Premier League

Chelsea outbid for Battersea Power Station site

Chelsea had planned to redevelop the site © PA Photos

Enlarge

Related Links

• News: Pogrebnyak keen to stay in Premier League
  

Chelsea will not be building a new stadium at Battersea Power Station after they were defeated in the bidding for the site.

The Champions League winners had pinpointed the plot on the south bank of the river Thames as a possible site for a new stadium, as part of a contingency plan due to concerns over whether they can redevelop their current Stamford Bridge home to the desired capacity.

The west London club were among 15 bidders for the 15-hectare area, but it was a £400 million joint bid by Malaysian property companies SP Setia and Sime Darby that was approved by Alan Bloom and Alan Hudson of Ernst & Young, the joint administrators and receivers of the site.

The two Malaysian companies signed an exclusivity agreement on Thursday, with plans afoot to redevelop the site with both residential and commercial properties - including an extension to the Northern Line thanks to a new underground station.

Chelsea will now turn their attention elsewhere, although they hinted that they will reawaken their interest if the preferred bidders decide to pull out of the deal after doing their due diligence.

"We will all be able to speak with more confidence about the site's future once the exclusivity period is over and the preferred bidder has been able to assimilate their risks properly and confirm the bid," Chelsea said in a statement.

"We are disappointed not to be selected as the preferred bidder for Battersea Power Station, as 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."

The site came on the market after a £5.5bn plan by the Irish developers Treasury Holdings collapsed as a result of the worldwide financial crisis.

Chelsea had planned to build a new, 60,000-seater stadium on the site - while retaining the familiar facade of the power station - and also intended to contribute to the extensive redevelopment of the area.

"Battersea Power Station is one of London's most famous buildings and has the potential to become one of the most iconic football stadiums in the world," a Chelsea statement read at the time. "We are not the only interested parties and there is no certainty that we will be successful.

"As well as a new home for our club, the development would include a town centre with substantial street-level retail shops, affordable housing and offices - all of which would benefit Wandsworth and bring a significant number of permanent jobs to the area."

Chelsea have also evaluated sites at Earls Court and Shepherd's Bush for a new stadium, while the club could remain at Stamford Bridge if a suitable plan for upgrading the ground can be agreed.

© ESPN Sports Media Ltd.