Enbridge Buys Ex-Costco Site for $25.5M Jobs South London 2026

Key Points

• Enbridge Gas has purchased the former Costco store at 4313 Wellington Rd. in South London, Ontario, for $25.5 million.
• The building spans 130,000 square feet (12,000 square metres) on an 11-acre site.
• Enbridge plans to relocate office staff, maintenance crews, and warehousing operations to the site.
• Kevin MacDougall, vice-president and broker with CBRE in London, represented the seller, PenEquity, in the deal.
• The sale closed on March 10, 2026.
• MacDougall described the transaction as “a great, great deal for everybody. We’re all very happy about it.”
• An Enbridge official confirmed the purchase and noted it will bring jobs to the area.
• The deal supports local economic development, as highlighted by the London Economic Development Corporation (LEDC).

South London (South London News) April 10, 2026 –South London has seen a significant commercial real estate transaction with Enbridge Gas purchasing the former Costco store at 4313 Wellington Rd. for $25.5 million, aiming to relocate operations and create jobs in the area.

What Has Enbridge Gas Purchased in South London?

The property in question is a 130,000-square-foot (12,000-square-metre) building situated on an 11-acre site, previously occupied by Costco.

As reported by the London Economic Development Corporation (LEDC) in their news update on April 9, 2026, Enbridge Gas has finalised the acquisition to shift office staff, maintenance crews, and warehousing functions to this location. Kevin MacDougall, vice-president and broker with CBRE in London, who represented the seller PenEquity, confirmed these details, stating that Enbridge will move these operations into the facility.

CTV News London reported on the development, noting the sale price of $25.5 million and quoting an Enbridge official:

“Enbridge Gas has recently finalized the purchase of a new building at 4313 Wellington Rd. S. in London. Over the coming months, we will be transitioning office staff, maintenance crews and warehousing to the new location.”

This move underscores Enbridge’s commitment to consolidating its presence in the region.

Who Represented the Parties in the Enbridge-Costco Site Deal?

Kevin MacDougall of CBRE London played a key role, acting on behalf of PenEquity, the seller of the site. MacDougall, who has over 40 years in commercial real estate and is consistently among the top producers in CBRE’s London office, described the outcome positively.

“It’s a great, great deal for everybody. We’re all very happy about it,”

said MacDougall, as quoted in coverage by the LEDC.

Officials with PenEquity could not be reached for comment at the time of reporting, according to a Facebook post in the ST THOMAS ONTARIO AND AREA NEWS group on April 9, 2026. Enbridge confirmed the deal through an official statement, aligning with MacDougall’s account of the operations transfer.

When Did the Sale of the Former Costco Site Take Place?

The transaction closed on March 10, 2026, as detailed in community discussions on platforms like Facebook. This timeline was referenced in multiple sources, including the LEDC news listing and social media posts from local groups tracking London-area developments.

Public announcements surfaced around April 9, 2026, coinciding with LEDC’s coverage and shares on X (formerly Twitter) by outlets like LFPress.

Why Is Enbridge Gas Moving Operations to 4313 Wellington Rd.?

Enbridge Gas intends to use the spacious facility for office staff, maintenance crews, and warehousing, enhancing operational efficiency in south London.

The LEDC highlighted this as positive news for job growth in the area, with the purchase bringing employment opportunities to the community. As per CTV News, the transition will occur over the coming months, supporting Enbridge’s regional infrastructure needs.

The site’s prior use as a Costco warehouse makes it suitable for these functions, given its size and location near major routes like the 401, as noted in local Facebook groups reminiscing about the old Costco. This relocation aligns with Enbridge’s broader operations as a major natural gas provider in Ontario, serving millions of customers.

How Will This Deal Impact Jobs in South London?

The relocation promises to bring jobs related to office work, maintenance, and warehousing to South London. LEDC’s April 9, 2026, post emphasised “bringing jobs to south London,” positioning it as a boost for the local economy.

Enbridge’s confirmation via CTV News specified the staff categories affected, indicating a practical expansion of their footprint.

Local reactions on social media, such as X posts from CTV London and LFPress, echoed the job creation aspect without further quantification. MacDougall’s involvement, through CBRE, facilitated this economic shift, contributing to community satisfaction with the deal.

What Is the Background of This Development?

The former Costco at 4313 Wellington Rd. South operated as a retail warehouse before closing, leaving the large industrial space available for redevelopment. PenEquity, the owner, marketed the 11-acre property through CBRE, with MacDougall and colleague Rick Spencer handling listings for similar industrial sites in the area.

Enbridge Gas, a subsidiary of Enbridge Inc., has a long history in Ontario’s energy sector, providing natural gas services to about 75% of residents in the province through its 175-year-old utility operations.

This purchase fits into London’s ongoing commercial real estate activity, as seen in LEDC’s recent news on other investments like Ikea at White Oaks Mall. The site’s proximity to key infrastructure supports Enbridge’s needs for reliable operations in natural gas distribution.

Predictions: How This Development Can Affect South London Residents and Businesses

This acquisition can introduce new employment opportunities in office, maintenance, and warehousing roles for South London residents, potentially reducing local unemployment and stimulating household spending. Businesses near 4313 Wellington Rd. may benefit from increased foot traffic and economic activity from Enbridge staff, supporting nearby retail and services.

The consolidation could enhance Enbridge’s service reliability for gas customers in the region, as the company expands its physical presence.

For the commercial real estate market, the $25.5 million sale sets a benchmark for large industrial properties, possibly attracting further investments to South London. Residents might experience minor traffic adjustments during the transition, but gain from stabilised energy infrastructure operations.