Asda is the latest retailer giant to announce that it is entering the property market.
The supermarket giant this week unveiled plans for a transformational mixed-use redevelopment of its ten-acre Park Royal site in North West London.
The retailer has partnered with property developer Barratt London on plans to redevelop the Brownfield site which is currently home to its Park Royal Superstore.
The proposal, which is subject to planning approval, includes creating a new town centre for the local community, at the heart of the Old Oak and Park Royal Development Corporation major regeneration area.
It will feature a brand-new 60,000 sq. ft flagship Asda Superstore and up to 400 car parking spaces for customers.
In addition, up to c.1500 new homes are planned, c.500 of these will be provided as affordable. A large number of the apartments will utilise a landscaped podium above the new Asda.
The majority of the new homes will provide high quality dual aspect accommodation. Sustainability will be at the heart of this new site – with the scheme providing significant biodiversity and ecology net gains.
The use of public transport will be encouraged at the proposed car free residential development, while the Asda car park will benefit from new EV parking spaces.
This mixed-use redevelopment of an established store site is a first for Asda and represents one of the largest land deals of the last couple of years.
The plans would also enable complementary businesses associated with a new town centre to open new retail units, restaurants, health and wellness facilities, and high-quality public realm space.
Plans would allow for Asda’s existing Park Royal Superstore to remain fully open and continue to serve the local community whilst work was carried out on the new store development.
Ian Lawrence, head of mixed-use developments at Asda, said: “Asda’s venture into Mixed-Use Property re-development marks a significant milestone for the Business. By working with leading developers like Barratt London, we are able to maximise the full potential of our property portfolio for the first time.”
“This allows us the opportunity to better serve local communities like Park Royal, with a new flagship store fit for the future, whilst creating windfall sites for Housing delivery. We are also unlocking further opportunities to release value from our extensive property portfolio, which can be reinvested back into the business to fund other initiatives and support our long-term growth ambition to become the UK’s second largest supermarket chain.”
Work on the planning application for this ambitious redevelopment deal is already underway and will be submitted later this year to the relevant bodies.
Craig Carson, MD of Barratt West London, commented: “We are proud to be partnering with Asda on their first mixed-use development. At Barratt London, we have a strong track record in both rejuvenating brownfield sites and delivering new homes in the Borough of Ealing, so it’s a partnership and site that makes perfect sense for us.
“This transaction is a sign that there is still land to be unlocked in the capital and reflects one of the markets largest land transactions since 2019. The redevelopment of Park Royal will have a huge impact on the area, with the new town centre unlocking new commercial opportunities for local businesses and providing a new hub for the local community. While the proposed delivery of 1,500 new homes will play a vital part in the Old Oak and Park Royal regeneration plans and will help to unlock much needed new and affordable homes in Ealing.”
Newsteer Real Estate, who have worked with other major retailers on similar redevelopment deals in the past, are acting as advisors to Asda throughout the process.
Ross Bettridge, director at Newsteer, added: “Retailers such as Asda at Park Royal provide great opportunities to utilise brownfield sites and deliver much needed housing for people living in the capital. At Newsteer, we are actively advising on similar opportunities with the potential to deliver c.12,000 homes. The key to unlocking these sites is about protecting and enhancing the retail offer while balancing the viability.”
