John Lewis Partnership unveils plans to build 1,000 rental homes
The John Lewis Partnership has embarked on a £500 million multi-decade joint venture with global investment company Abrdn in which it will create around 1,000 new homes for rent.
John Lewis had previously announced that it was planning to use its significant property assets to build residential homes and diversify its business. The joint venture will help it create 10% of the 10,000 new homes it is aiming to build over the next decade.
The deal will include the partnership developing and managing the proposed new sites, as well as commitments to affordable housing and sustainability tied to its 2035 net-zero pledge.
In Bromley and West Ealing, Waitrose shops will be redeveloped to provide new homes and improved stores. In Reading, a vacant John Lewis warehouse will be redeveloped. The partnership said the sites were selected due to their central location and proximity to transport links.
Nina Bhatia, executive director for strategy and commercial development at the John Lewis Partnership, said: “Our partnership with Abrdn is a major milestone in our ambition to create much-needed quality residential housing in our communities. Our residents can expect homes furnished by John Lewis with first-rate service and facilities. The move underlines our commitment to build on the strength of our brands to diversify beyond retail into areas where trust really matters.”
The partnership is currently working with the three local authorities and communities to evolve its plans and expects to submit its first planning applications for Bromley and West Ealing next year. A first public consultation for the site in Reading is expected in 2023.
Neil Slater, head of real assets at Abrdn, said: “The critical lack of quality rental accommodation in the UK needs to be addressed, so we are delighted to partner with the John Lewis Partnership to provide the required institutional investment. The ambitions and responsible ethos of our brands both strongly align, and our partnership should offer investors long-term returns and give residents confidence in a top-quality living experience.”
