John Lewis Partnership is quitting its warehouse in Park Royal, west London, after agreeing a deal with Gazeley for a new mega shed in Milton Keynes.
The retailer is now expected to sell the 350,000 sq ft site in Park Royal, which was built in 1989 and could fetch as much as £30m.
John Lewis has been in talks with Gazeley for a second mega shed at Magna Park in Milton Keynes for several months, as revealed by Estates Gazette.
The pair agreed a deal this week for the construction of a 675,000 sq ft building that will connect to John Lewis’s existing 650,000 sq ft shed at the site, which it opened in 2009. A 30-year lease has been agreed at around £5.75 per sq ft.
John Lewis is expected to begin a search for a new smaller delivery hub in west London shortly.
Operations director Dino Rocos said: “Magna Park gives us the space we need and allows us to continue to build on the improvements we have made in providing better service to our shops and customers at a lower cost.”
Burbage Realty acted for Gazeley; Cushman & Wakefield advised John Lewis.
nick.whitten@estatesgazette.com
