Brixton refreshes its spirit with £48m Park Royal coup

Industrial developer Brixton is to acquire the 25 acre (10.1 ha) former Guinness brewery site in west London from drinks company Diageo for around £48m.

The price represents a record of almost £2m/acre (£4.9m/ha) for a substantial land purchase in the Park Royal area of west London, which is already one of the UK’s most expensive industrial development locations.

Brixton plans an industrial and warehouse scheme of more than 500,000 sq ft (46,451 sq m).

It will take control of the site at the end of the year when Diageo has cleared it of existing buildings and carried out remediation.

The buildings include the original brewhouse, fermenting house and malt and hop store designed in the 1930s by Battersea Power Station architect Sir Giles Gilbert Scott, which has been given immunity from listing by the government.

Brixton outbid a heavyweight shortlist that included British Land in a joint venture with Kier; Slough Estates; and developer Space in a joint venture with Standard Life. There was also an offer from a residential developer.

Diageo was keen to secure an unconditional offer on the site, and the local council is known to favour employment uses for it, although it was sold without planning consent.

However, a development brief by the London Development Agency, the Greater London Authority and Brent Council does allow some residential development on the site, as well as educational and community uses.

The site borders other residential sites, and has access to two Underground stations.

It is also unlikely to include a substantial office element, as it is near London & Regional’s 1.3m sq ft (120,772 sq m) FirstCentral office scheme, where Diageo has its headquarters building.

Brixton owns more than 4m sq ft (371,609 sq m) of industrial and office development in Park Royal, totalling more than £500m.

It has a development pipeline of around 1.5m sq ft, to which the Guinness site will add 500,000 sq ft (46,451 sq m).

The site was brought to the market after Diageo moved the production of Guinness to Dublin.

Savills acted for Diageo. No party would comment on the deal.