Ocado signs lease at Merton Industrial Park
Dedicated online supermarket Ocada is to operate from Merton Industrial Park following the signing a leasing agreement with owners Aviva Investors.
As part of the agreement, Ocado will occupy the 1.6-acre site formerly occupied by Homebase, which offers over 32,600 sq ft of floorspace, under a ten-year full repair and insurance lease.
Following a repositioning of the asset from retail to industrial use and a tailored refurbishment to an agreed specification, Ocado have taken occupancy in June this year, to commence their fit out.
Colin Lawrence-Waterhouse, Asset Manager, Real Estate, at Aviva Investors, says: “We are pleased to welcome Ocado to Merton Industrial Park, joining other businesses including Amazon, Whitelight and Bako. The quality of tenant attracted to the estate is reflective of its strong location for urban logistics, with excellent access to suppliers and customers in Central London and beyond via major road networks including the adjacent A24 and the nearby A3. This type of asset remains in keeping with our desire for high-quality assets in strong locations and we believe it will continue to perform well over the long-term.”
Richard Locke, Director of Operations, Ocado Retail, says: “We are delighted to have taken occupancy of this site in Merton. We’re the fastest growing UK retailer and this site is a critical part of growth ambitions. We’re tremendously excited about expanding our reach and serving more customers in the area.”
Aviva Investors was advised by Altus Group, Centro and Avison Young; Ocado by Gerald Eve.
Robert Bradley-Smith, of Altus Group, says: “This letting shows the strength we have seen in the last mile logistics and home food delivery sectors over the last few years. Merton Industrial Park is ideally located in South London to access a considerable amount of chimney pots. Once B8 planning consent (storage and distribution) was received we could have let this building to a number of very strong end users.”
Ocado is one of several new businesses to take up premises in Aviva Investors’ South West London business parks this year, demonstrating the strength of the company’s brand in the area.
Owning 500,000 sq ft of industrial space across approximately 27 acres in Merton alone, the global asset management business of Aviva plc, has gained a reputation for flexibility with both physical space and lease agreements.