Cargiant has won an early battle in the war to redevelop Old Oak Common by buying a strategic site at nearby Park Royal, West London.
The used-car supermarket has bought John Lewis’s distribution centre for £26m.
Queens Park Rangers FC withdrew from bidding for the site to facilitate Cargiant’s relocation away from Old Oak Common, where it is planning a major development. But the decision to withdraw came before the football club was aware that Cargiant had its own development plans for its 43-acre holdings at Old Oak Common.
SEGRO and Prologis also lodged bids for the John Lewis site.
QPR hopes to build a new stadium and 24,000 homes at Old Oak Common.
But Cargiant will soon launch a consultation on a 9,500-home development – including employment space, a high street and schools – which does not include a new stadium for QPR.
The company has appointed Lipton Rogers and First Base to bring forward the rival masterplan for what is expected to be one of the capital’s largest regeneration projects.
Cargiant has bought the Park Royal site to give it options for its own expansion and relocation plans, and those of tenants affected by its redevelopment of Old Oak Common.
Managing director Tony Mendes said Cargiant was committed to bringing forward its own scheme and there was no need for a stadium to provide a “catalyst for regeneration”.
“We’ve got Crossrail, HS2, and new stations coming in,” he said.
“QPR is treating this like buying a player by trying to unsettle the other club,” he added.
John Lewis will agree a short leaseback on the 285,500 sq ft shed until 2016, paying £1.5m pa. The deal reflects a 5.4% net initial yield.
Aspect Property Consultants and JLL advised John Lewis; Cargiant was unrepresented.
chris.berkin@estatesgazette.com
