Ocado extends property lease with Origin

Ocado has secured a 15-year lease for its grocery delivery facility at Origin, SEGRO’s urban logistics industrial development at Park Royal in West London. 

The online grocer, which first leased the speculatively built 68,392 sq ft facility from the company in 2014, announced that it will be expanding its agreement to include a new BREEAM Excellent-rated property measuring 54,806 sq ft.  

The move comes as the grocer has been increasing its operational capacity to meet growing customer demand.  

The deal will bring Ocado’s total occupied space with Origin to over 121,000 sq ft. 

SEGRO is working with Ocado to add substantial infrastructure to enable the operation of additional electric vehicles from the unit. 

The retailer has also worked with the property company in the past to establish a 304,355 sq ft state-of-the-art customer fulfillment centre as part of its deal with Marks and Spencer at SEGRO Logistics Park Purefleet.  

READ MORE: Ocado hit by £23m loss as retail growth stalls

Ocado is set to boast a total of over 400,000 sq ft within SEGRO’s portfolio upon the completion of its newest development. 

“We’re pleased to continue our partnership with SEGRO at Origin, Park Royal,” Ocado Retail property and network development manager Ed Grover said. 

“Extending our site creates over 150 jobs for local people and allows us to serve a growing customer base in the London area. 

“We’ve seen a huge demand for our services this year and we’re pleased to be able to expand our operations to serve over 10,000 more customers from Park Royal.” 

SEGRO Greater London managing director Alan Holland added: “The demand for online groceries continues to rise and we are pleased to be able to accommodate Ocado’s expansion at Origin. 

“The quality of the warehouse facilities combined with its location in West London and a vast urban catchment area makes Origin a compelling location.”  

“This is a great example of the strong and meaningful relationships we seek to build with our customers and how we have been able to invest the time to understand Ocado’s requirements and offer them a creative solution at Origin.” 

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