Morston Assets and Sainsbury deal checks out.

11th July 2011

Property developer Morston Assets has announced the completion of its deal with Sainsbury to buy a 12 acre plot for the development of a 70,000sq foot superstore on the outskirts of King's Lynn. Up to 300 full and part time jobs will be created at the new store, which is adjacent to the Hardwick Roundabout. It will include an in-store bakery, delicatessen, restaurant and petrol station. The existing town centre store where about 150 full and part-time people work will continue to offer its existing service. There are plans to open a third Sainsbury's around the bus station when the proposed development eventually takes place. Pinguinlutosa has given up part of its 44-acre site to accommodate the supermarket giant. Landlord Morston Assets has committed to reinvesting proceeds from the Sainsbury sale in improvements to Pinguin's premises. This has cemented Pinguinlutosa's commitment to their tenancy in Kings' Lynn, which will safeguard around 300 full and part-time and 200 seasonal jobs. Pinguin UK managing director, Peter Denolf said: "This is a unique opportunity to consolidate our UK activity here in King's Lynn." A £7m investment from Morston Assets will pay for a new cold store, offices, effluent plant and the latest machinery. The company's marketing and innovations manager Stuart Robinson said: "The investment will see our UK headquarters in Lynn handling 75% instead of half our annual UK production and virtually all instead of only two thirds of its UK packing operation." Failure of the deal could have resulted in the Lynn factory becoming a cold storage site and many of its work force being relocated. Morston Assets and Sainsbury have agreed to fund a new £7.5m link road from the A149 to Scania Way as part of the deal which opens up 60 acres of allocated employment land. The sale of the site to Sainsbury triggers the purchase of 33 acres of neighbouring land allocated for employment development from the Symington family. Morston Assets development director James Bunn said: "This is great news for King's Lynn. The Sainsbury's deal is a catalyst for so much investment, in particular the improvements at Pinguin's site, which will help create an ultra modern and efficient processing, freezing and storage plant. Coupled with the long awaited extension of the Hardwick Industrial Estate, we are now able to offer some of the best employment land in the town that will hopefully attract new investment and stimulate growth in Lynn".