Supermarket giant Asda has become the latest retailer to branch into residential property, unveiling plans to build 1,500 homes and create a new town centre in London.

Park Royal - CGI (1)

The proposed housing development site at Park Royal will allow Asda “to maximise the full potential of its property portfolio”

Asda is looking to redevelop a 10-acre site in conjunction with housebuilder Barratt Developments, creating a new town centre with a large Asda store as well as 1,500 homes and other retail units in the Old Oak and Park Royal area near Acton, north west London.

The grocer said the majority of the homes will provide “high quality dual aspect accommodation” and that “sustainability will be at the heart of the new site”, encouraging “the use of public transport… at the proposed car free residential development” and a car park with EV charging spaces.

The move is a first for Asda and is one of the largest land deals completed in the last few years, the supermarket has claimed, despite not disclosing the cost of the deal.

The retailer also said it was considering other similar projects at a number of its freehold sites around London.

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, while creating windfall sites for housing delivery.”

He continued: “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.”

Last year, John Lewis submitted its plans to build rental homes above its Ealing and Bromley Waitrose stores. It also earmarked a warehouse site in Reading for housing development.