Sainsbury’s has announced plans to exploit its sites for third parties in the leisure, residential, commercial and service sectors.
The move is in an attempt to release value from its £4.5bn portfolio. The company expects to be one of the top 10 developers by value and possibly in the top five in the next three to four years.
It will be seeking target returns on capital from development projects of about 15%. It has restructured its property arm into a separate business unit.
About 65% of its property assets are freehold. It hopes to generate £300m over the next four years.
The group’s Maidenhead, Berkshire, store is being demolished and replaced by a store with offices above it. It is seeking planning permission to build a hotel and leisure centre on the Nine Elms site in Vauxhall, south London.
Plans are also in the pipeline to develop stores in Peterborough, Cambridgeshire, and High Wycombe, Buckinghamshire. The High Wycombe project is in partnership with Stannifer. It hopes to develop up to 40 stores initially with third party facilities.
Financial Times 12/09/00 page 28
The Daily Telegraph 12/09/00 page 32
The Times 12/09/00 page 28
The Independent 12/09/00 page 17
