A Malaysian company has won the bidding war for the Battersea Power Station site, beating off competition from Chelsea FC.

The administrator of the site, Ernst & Young, has stated that it has entered into an exclusive agreement with SP Setia and Sime Darby and that the company has purchased the 39-acre Battersea development on the banks of the River Thames for £400 million.

The Far East bid beat 15 other applicants for the rights to the site, including Chelsea FC, which was planning on building a new 60,000-seater stadium to move away from its current Stamford Bridge home but now they are being forced to re-think the situation.

It has been announced that the Malaysian bid is a private deal, meaning that the exact details of what the company plans to do with the Battersea site have yet to be disclosed. However, SP Setia and Sime Darby has stated that the facility will be a "multi-use real estate regeneration project" although planning permission for a new London Underground station as well as room to build new homes is already in place.

Wandsworth council leader Ravi Govindia said: "We're making tremendous progress towards transforming this old industrial stretch of the South Bank which will provide up to 25,000 new jobs for London.

"It's important that this site and its iconic building are not left behind and that a developer is brought in who understands our vision for the new Nine Elms."

Chelsea FC did not comment on the awarding of the site to the Malaysian company but the club may now look to expand its current Stamford Bridge ground, and the team's chief executive Ron Gourlay has already hinted that the Champions League winner's future could lie at their current stadium.

Last month, Mr Gourlay said: "We indicated [to the Chelsea Pitch Owners] that we were doing everything in our power to stay at Stamford Bridge, to extend Stamford Bridge, and we've looked at potential opportunities of a new-build around the Stamford Bridge area."

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