The Toys R Us store at 760 Old Kent Road, SE1, has been earmarked for closure, paving the way for a developer to take over the valuable site.
The retail warehouse site is included in a list of 26 that the retailer is planning to close as part of a company voluntary arrangement in a bid to raise funds to reposition its portfolio in the challenging retail market.
The site is one of several which Toys R Us Properties UK owns freehold, and is on the route of the proposed Bakerloo line Tube extension.
Its positioning and proximity to the Old Kent Road Opportunity Area means that it has become one of the most sought-after residential development sites in London, and one of the last pieces in the Old Kent Road jigsaw.
It is one of the last big box retail sites left in the Old Kent Road Opportunity Area around the proposed Tube extension, where 20,000 new homes are planned with the backing of the Greater London Authority and the lowering of the Community Infrastructure Levy, and where there has been a general nod towards higher density development.
However, the site is one of two still being considered for the station itself, against L&G’s PC World site at 180 Old Kent Road.
Other developments nearby include the Berkeley owned Malt Street site, which has seen a hybrid application submitted for 1,050 homes in towers of up to 36 storeys, while Aviva and Galliard have announced a tie-up on the Cantium retail park, which could accommodate 1,000 homes.
A consortium led by Omer Weinberger and Marc Pennick bought the Ruby Triangle site, where it plans more than 1,000 homes, while further along the Old Kent Road, Mount Anvil is planning a 1,400-home scheme next to New Cross Gate Station, in partnership with Sainsbury’s.
The Toys R Us store closure programme is being run by insolvency adviser Alvarez & Marsal. Agents have yet to be appointed on the disposal programme, however Cushman & Wakefield has previously worked alongside the chain’s in-house retail team to identify downsizing opportunities within its estate.
