Tesco is planning to get involved with large-scale urban regeneration initiatives in London and the Southeast in an effort to counter the severe shortage of suitable development sites.
The move could see the retailer taking a lead role in major mixed-use developments.
First out of the ground is likely to be the redevelopment of the Lowfield Street area at Dartford, Kent, where Tesco is working in partnership with St James's Investments. Dartford Borough Council has already demonstrated its commitment by voting in principle to exercise compulsory purchase powers to complete the site acquisition. Developers now anticipate making a planning application during November.
The scheme will provide a Tesco Extra hypermarket of up to 100,000 sq ft (9,290 sq m), plus a range of standard shop units opening out onto a new public square. There will also be a medical centre and 459 apartments.
Tesco regional property director for London and the Southeast Patrick Stones is looking to import expertise from its central European operations.
Tesco's hypermarkets in Hungary and the Czech Republic have long incorporated smaller retail units and other uses, including leisure.
Tesco has already carried out a series of successful urban regeneration initiatives in Scotland and the north of England, but the new generation of schemes in London and the Southeast are driven more by the shortage of sites than the need for economic regeneration.
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