UPDATE 1-Malaysians beat Chelsea to Battersea site

(Adds Chelsea reaction)

KUALA LUMPUR/LONDON, June 7 (Reuters) - Malaysia's SP Setia Bhd and Sime Darby Bhd's property arm won the right to redevelop the Battersea Power Station site in central London in a 400 million pound ($618 million) deal, beating a rival bid from Chelsea Football Club.

About 15 bidders including Champions' League winners Chelsea, owned by Russian billionaire Roman Abramovich, submitted plans last month to buy the protected 15-hectare site on the south bank of the River Thames, the subject of repeated failed redevelopment attempts in the three decades since it shut.

The Malaysian companies have inked an exclusivity agreement with Alan Bloom and Alan Hudson of Ernst & Young LLP, the joint administrators and receivers of the property, SP Setia and Sime Darby said in a joint statement on Thursday.

Chelsea said it was disappointed not to have been chosen as preferred bidder but indicated it was not giving up all hope of acquiring the site.

"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.

The club has played at Stamford Bridge in west London since 1905 but the stadium's capacity of 42,000 is limited when compared with other top European clubs. Chelsea wants to expand the stadium or find a new home.

The deal marks SP Setia's first foray into Europe and adds to its residential schemes in Vietnam, Singapore and Malaysia.

The Malaysian companies said the redevelopment of the site will regenerate a corner of southwest London.

SP Setia and Sime Darby will build a new underground train station as part of the proposed extension of the northern line of the London network, according to the filing.

The crumbling riverside edifice - Europe's largest brick structure - and its quartet of art-deco white chimneys have been part of the London skyline for 80 years.

The site came on to the market after the collapse in December of a 5.5 billion pound plan by Irish developer Treasury Holdings for homes, shops and offices. ($1 = 0.6469 British pounds) (Reporting By Yantoultra Ngui in Kuala Lumpur and Keith Weir in London; Editing by David Holmes)