John Lewis confirms £500m rental home venture

The John Lewis Partnership has agreed a £500m joint venture with global investment company abrdn to deliver around 1,000 new homes across three local communities.

In Bromley and West Ealing in Greater London, subject to planning permission, Waitrose shops will be redeveloped to provide new homes and improved stores. In Reading, a vacant John Lewis warehouse will be redeveloped.

The deal marks a “milestone” in the company’s plans to use its property assets to build residential homes and diversify the business. The joint venture will allow John Lewis to reach 10% of its goal to build 10,000 new homes over the next decade.

The deal will see John Lewis develop and manage the proposed new sites and includes commitments to affordable housing and sustainability.

John Lewis believes the ‘build-to-rent’ residential property market is estimated to double with 30k build-to-rent homes completed annually by 2026.

Nina Bhatia, executive director for Strategy and Commercial Development, 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.”

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.”