The former Nestle plant at Hayes, West London, is to be redeveloped for housing – but the redevelopment will include 230,000 sq ft of logistics floorspace.
SEGRO will work with Barratt London on the 30-acre site close to junction 3 of the M4 motorway.
The agreement is subject to planning permission from Hillingdon council.
SEGRO bought the 30 acre site in January in 2015 as part of its strategy to provide high quality urban warehousing to meet the growing demand from occupiers.
SEGRO will eventually sell the land earmarked for residential to Barratt London who will be responsible for delivering the homes and community space on the former coffee and chocolate factory site.