German firm wants to build 3,000 homes alongside new store openings
German grocer Lidl鈥檚 entry into construction shows mixed-use schemes are the future of developments in the UK, according to industry analysts.
Lidl announced this week that it plans to build over 3,000 homes and a primary school around London in the space of just three years.
The discount grocer has already built 335 homes, with a further 476 in the pipeline, as it increasingly pursues mixed-use developments in order to get consent for shops in areas with struggling pre-existing retailers.
In addition to housing, Lidl鈥檚 development plans include mixed-use schemes featuring offices, hotels, student accommodation and schools 鈥� a new store in Richmond, south-west London, is going up with a primary school, Deer Park, being built on top of it.
And a scheme (pictured) designed by FAL in Alperton, north-west London, includes 251 residential units and office space.
Lidl chief executive Christian H盲rtnagel added: 鈥淭o date, our stores have supported the creation of over 800 homes, which have either been built, or are soon to be built, and we鈥檙e entirely open to exploring opportunities to help facilitate further developments. In London alone, for example, there is the potential for Lidl stores to be part of schemes that could see over 3,000 new homes being built over the next three years.鈥�
Russell Pedley, director and co-founder at Assael Architecture, said: 鈥淎mid a housing crisis, it makes sense for councils and local authorities to encourage retail developers to integrate homes into their projects, keeping the 鈥榟igh street鈥� vibrant.鈥�
Other supermarkets to use mixed-use schemes to bag store approvals include Sainsbury鈥檚 which developed 700 homes in a joint venture with Barratt in Nine Elms, near Vauxhall, two years ago and Tesco has developed retail and housing schemes elsewhere in London at Woolwich and Streatham.
Ed Fowkes, a director at Prosperity Capital Partners which invests in property for development, said: 鈥淎s land costs continue to rise alongside build costs, it makes sense for developers to intensify their land use and increase the density of developments.鈥�
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