LONDON (Reuters) - British online supermarket Ocado (L:OCDO) has struck a deal to establish a fourth major distribution centre, seeking to satisfy growing demand for grocery shopping over the internet.
The firm, whose range includes products supplied by upmarket grocer Waitrose (JLP.UL), said on Thursday it had entered into an agreement for a fourth so-called customer fulfilment centre in Erith, south east London, to be developed by Bericote Properties and funded by Tritax Big Box REIT (L:BBOXT).
Ocado said that although planning consent was not yet secured, it expected to start fit out work on the centre in 2016 and begin operations by 2017.
In a separate statement Tritax said it was providing funding of 98.8 million pounds ($150 million) for the project.
Ocado said further details will be provided when it reports 2013-14 results on Feb. 4.
Ocado's third customer fulfilment centre in Andover, southern England, is scheduled to open at the end of this year.
The firm has not made an annual pretax profit since it was founded in 2000 but analysts are forecasting one of about 10 million pounds for its 2013-14 year, which ended Nov. 30, along with underlying core earnings of 71 million pounds.
That expected outcome partly reflects the signing last year of its first third-party deal with Britain's No. 4 supermarket Morrisons (L:MRW).