Tesco is well on its way to fulfilling its prediction to build as many as 4,000 new homes by 2008 as it speeds up the roll-out of new city centre stores.
Its latest effort will be a 27-floor, 430-apartment residential tower block in Kensington, London, as it continues its bid to overcome strict planning regulations.
An application was filed this week and, if permission is granted, the block will be built above the car park of the existing Tesco store, under licence to developer Multiplex.
The supermarket giant is also building its first major mixed-use development in the Midlands, on Birmingham’s Bristol Street. It will include a 93,000 sq ft store, a 35,000 sq ft leisure complex and more than 200 residential units.
The developments come as Tesco prepares to officially open its latest £22m mixed-use
scheme in London’s Clapham South on Monday (September 19), incorporating 104 flats and a 25,000 sq ft store.
Tesco head of residential development Andrew Wilson admitted the retailer was now a notable player in the residential property market. “We don’t intend to get involved in speculative development on a
large scale,” he said. “But yes, we are very much a potential partner. We’ll be looking for partners with whom we can share the risks, and rewards.”
Gavin Rothwell, senior retail analyst at Verdict Research, said it made sense for Tesco to go down this development route as it was easier to obtain planning permission for residential projects than for purely commercial sites. “It significantly helps their application if they can be seen to be adding housing and services to the local infrastructure, as well as being good for the public face of the retailer. It also doesn’t hurt that they have an instant captive audience for their store.”
The Kensington tower block will feature a range of accommodation from affordable housing on the lower floors to luxury urban flats on the upper levels. It will also have a health club.
Tesco had already obtained planning permission to develop an office block on the site, but the new application would mean switching it to residential use. A spokesman for Multiplex added that its plan also incorporated significant “public realm improvements” such as better lighting, paving and the planting of trees.
Rachel Barnes
Its latest effort will be a 27-floor, 430-apartment residential tower block in Kensington, London, as it continues its bid to overcome strict planning regulations.
An application was filed this week and, if permission is granted, the block will be built above the car park of the existing Tesco store, under licence to developer Multiplex.
The supermarket giant is also building its first major mixed-use development in the Midlands, on Birmingham’s Bristol Street. It will include a 93,000 sq ft store, a 35,000 sq ft leisure complex and more than 200 residential units.
The developments come as Tesco prepares to officially open its latest £22m mixed-use
scheme in London’s Clapham South on Monday (September 19), incorporating 104 flats and a 25,000 sq ft store.
Tesco head of residential development Andrew Wilson admitted the retailer was now a notable player in the residential property market. “We don’t intend to get involved in speculative development on a
large scale,” he said. “But yes, we are very much a potential partner. We’ll be looking for partners with whom we can share the risks, and rewards.”
Gavin Rothwell, senior retail analyst at Verdict Research, said it made sense for Tesco to go down this development route as it was easier to obtain planning permission for residential projects than for purely commercial sites. “It significantly helps their application if they can be seen to be adding housing and services to the local infrastructure, as well as being good for the public face of the retailer. It also doesn’t hurt that they have an instant captive audience for their store.”
The Kensington tower block will feature a range of accommodation from affordable housing on the lower floors to luxury urban flats on the upper levels. It will also have a health club.
Tesco had already obtained planning permission to develop an office block on the site, but the new application would mean switching it to residential use. A spokesman for Multiplex added that its plan also incorporated significant “public realm improvements” such as better lighting, paving and the planting of trees.
Rachel Barnes
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