New owner of Slough retail park eyes data centre potential

The Bath Road Shopping Park has been sold to SEGRO in a deal worth more than £120million.

The retail park, which is home to major retailers including Boots and B&Q, has been described as having ‘data centre redevelopment potential’ by its new owners.

A spokesperson for SEGRO said: “Land suitable for industrial development is in high demand and short supply in the Thames Valley and the relatively short lease terms of the retail units creates an opportunity to redevelop the site into modern warehousing suited to a variety of users, including data centres.”

The real estate developer, which owns Slough Trading Estate, said a third of the 10 retail warehouse units on the site are currently vacant which provides immediate opportunities for asset management or redevelopment initiatives.

The remaining leases at the retail park are due to expire between 2023 and 2028, the company added.

Bath Road Shopping Park had previously been owned by the Royal London Mutual Insurance Society.

Fast food giant McDonald’s has also purchased the drive ‘thru restaurant at the front of the site which it previously leased from Royal London in a deal worth £3.5 million.

Elise Buchanan, senior asset manager at Royal London Asset Management added: “Royal London is delighted to announce the sale of the Bath Road Shopping Park, Slough. In a challenging market, the price achieved reflects a premium to the existing use value”.

Stephanie Hacking, portfolio fund manager for the Royal London Pension Property Fund that sold the asset added: “This is an excellent sale in a difficult market at a price that is accretive to fund performance. The sale will allow the fund to recycle capital into other sectors that we consider offer better future performance prospects”.