Asda has teamed up with housing developer Barratt London to produce plans that would see its Park Royal Superstore rebuilt with blocks of flats above it.
The development would feature a new 60,000 sq ft Asda Superstore with 400 car parking spaces for customers, plus in the region of 1,500 residential apartments (of which a third would be designated affordable).
The proposal, which is subject to planning approval, includes creating a new town centre within the Old Oak & Park Royal Development Corporation regeneration area.
A planning application is expected to be submitted later this year.
Asda said that 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”.
Plans would allow for Asda’s existing Park Royal Superstore to remain open while work is carried out on the new 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.”
Craig Carson, managing director of Barratt West London, added: “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, which has worked with other retail groups on similar redevelopment deals in the past, is an advisor to Asda on this scheme.
Newsteer director Ross Bettridge said: “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.”
In 2021 US retail giant Walmart sold control of Asda to brothers Mohsin and Zuber Issa, who had made their fortune from corner shops and petrol stations, with backing from TDR Capital. Earlier this month they refinanced more than £3.2bn of Asda debt.
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