Supermarket giant Asda will develop its ten-acre Park Royal site in West London, building 1,500 homes, with a third being ‘affordable’.
The Issa brother-owned grocer has entered into an agreement with developer Barratt, on a Brownfield site, currently home to a superstore, marking a “significant milestone” for the firm.
If given planning approval, the new site will be a ‘town centre’ linking Old Oak and Park Royal, regenerating the area. It will feature a 60,000-square-foot Asda store and 400 car park spaces.
The mixed-use site will include 1,500 homes and a third of which will be ‘affordable’. It said a ‘large number’ of them will use the podium above the new superstore,
Asda also said the homes will have sustainability “at the heart of this new site” with public transport and EV charging points promoted at the “car free” residential development.
It said the agreement was one of the “largest land deals of the last couple of years” and would allow businesses associated with the new ‘town centre’ to open retail units. It will also allow existing superstore retailers to stay open while work is carried out.
It’s not been revealed how much the agreement is worth.
The supermarket giant said a deal had pushed the majority of its maturities past 2030 and included the biggest sterling high-yield bond this year.
Ian Lawrence, head of mixed-use developments at Asda, said its “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.”
Craig Carson, managing director of Barratt West London, said: “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.”