(Sharecast News) - UK supermarket group Asda on Monday revealed plans to redevelop a 10-acre site in North West London, hoping to create a new town centre that includes 1,500 new homes.
The grocer said it is partnering with develop Barratt Developments to redevelop the brownfield site, currently home to its Park Royal Superstore in the Borough of Ealing.
The proposal, which is subject to planning approval, will see Asda build a new 60,000 square foot superstore and car park, in addition to 1,500 new homes - 500 of which will be affordable - "creating a new town centre for the local community".
The mixed-use redevelopment of an established store site is a first for Asda and follows moves by a number of other retailers to get into the house-building game, such as Sainsbury's which submitted plans in October to deliver 2,519 new homes alongside a new 1,300 sq ft store near Ladbroke Grove.
While there was no financial information given, Asda said in a statement that the plans represent "one of the largest land deals of the last couple of years".
Ian Lawrence, head of mixed-use developments at Asda, said Asda's foray into mixed-use redevelopment 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."
Lawrence added that Asda is "also unlocking further opportunities to release value from our extensive property portfolio, which can be reinvested back into the business to fund other initiatives".
Barratt Developments (BDEV)