The Blues' hopes of moving to the Power Station are finished after a Malaysian consortium bought the London landmark for £400 million, planning to build homes and office spaces

Chelsea's plans to relocate to Battersea Power Station are over after a Malaysian consortium comepleted the £400 million purchase of the London landmark.

In May, the west London club revealed their proposal to transform the derelict site into a 60,000-seater stadium with the four iconic chimneys included in the design.

They want to leave current home Stamford Bridge and move to the 39-acre site on the South Bank of the River Thames in the hope they will generate the same matchday revenue as the likes of Arsenal and Manchester United, but saw their bid snubbed by administrators Ernst & Young.

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Instead a group joint bid by two Malaysian companies – SP Setia and Sime Darby were named as the preferred bidders with their application now formalised following a 28-day due diligence process.

Their intention is to build 3,500 homes and 1.7 million square feet of office space along include a tube station that will connect to the Northern Line.

"Following a global marketing process that started in February 2012 and covered all major world wealth centres, a consortium comprising SP Setia, Sime Darby and the Employees' Pension Fund of Malaysia have exchanged contracts on the (Battersea) site for £400m," a statement from Ernst & Young read.

It's the second blow in the space of a year for Chelsea after they failed in their attempts to buy back the freehold of Stamford Bridge from the supporters group Chelsea Pitch Owners.