Asda has announced that it is entering the housing market as it backs plans for a major mixed-use development in north west London.

The retailer is partnering with property developer Barratt London to redevelop the 10-acre site of its existing Park Royal superstore in what is one of the largest land deals of the last couple of years.

Ian Lawrence, head of mixed-use developments at Asda, says its new venture “marks a significant milestone for the business” and will allow it “to better serve local communities”.

Plans for the brownfield site include a new town centre as well as around 1,500 new homes, a third of which will be affordable housing. There will also be access for some residents to a landscaped podium landscape above a new 60,000 sq ft flagship superstore, which will have nearly 400 car park spaces for customers.

“This transaction is a sign that there is still land to be unlocked in the capital and reflects one of the market’s largest land transactions since 2019,” says Craig Carson, managing director of Barratt West London.

A planning application for the redevelopment will be submitted later this year.