The world’s most famous department store is close to finalising its year-long search for a distribution hub.
Harrods is in advanced talks with SEGRO to house a bespoke 330,000 sq ft warehouse at the site of the former Guinness Brewery at Park Royal in west London.
The retailer, which Mohammed al-Fayed sold to Qatar Holdings for £1.5bn in May, is understood to favour the site – now called Origin Park – over Kier Property’s Western International Park in Hayes, Middlesex.
Kier has consent for a 305,000 sq ft shed on the site.
A source close to the talks said: “The Harrods team have been spending an awful lot of time with SEGRO, incurring a lot of costs to get a deal done. They are very close. This will be good news for Origin Park.”
A deal with Harrods would represent the first letting at Origin Park since Brixton, which was taken over by SEGRO last year, acquired the 24-acre site from drinks giant Diageo in 2007.
The former brewery land has consent for more than 500,000 sq ft of commercial development, including industrial and data centre uses.
Harrods has been searching for a new distribution depot since it sold its 13-acre site at Osterley, Middlesex, to BSkyB for £57m earlier this year.
The broadcasting giant, which has its HQ on an adjacent site, leased the building back to Harrods on a three-year term.
King Sturge advises SEGRO; Cushman & Wakefield is letting agent at Western International; Harrods is unrepresented.
nick.whitten@estatesgazette.com
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