Sainsbury’s has selected a west London site for its first distribution centre dedicated to Orderline, its home shopping service.
The retailer has taken a 11,150 sq m (120,000 sq ft) prelet at Powergate in Park Royal for the centre, which will serve areas within the M25.
Chancerygate and Standard Life Investments are developing the 28,800 sq m (310,000 sq ft) Powergate scheme. Sainsbury’s shed will be operational by next June, with the rest of the scheme completed by July 2000. It will have an overall value of over £30m.
Sainsbury’s has agreed a 20-year lease, without breaks at £89 per sq m (£8.25 per sq ft).
Angela Megson, director of special business units at Sainsbury’s, said: “The picking centre is a landmark in Sainsbury’s development plans for home shopping. We believe e-commerce, and home shopping in-particular, has huge potential in the UK, that is why we are investing in a distribution centre solely for Orderline.”
Sainsbury’s were represented by Lambert Smith Hampton, while Chancerygate and Standard Life were jointly represented by Strutt & Parker and Alexander Johnson.
EGi 30/11/99
