Homeware to homes…John Lewis to build rental flats
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The department store and Waitrose owner confirmed a tie-up with financial giant Abrdn for 1,000 new “build-to-rent” homes in three areas, Bromley and West Ealing in Greater London, and Reading in Berkshire.
The worker-owned retailer’s ambition is to build 10,000 new homes over the next decade.
The John Lewis Partnership will also kit out the furnished flats and act as landlord.
The group first announced the plans in June, but has now confirmed that Abrdn – formerly Standard Life Aberdeen – will provide the funding.
Nina Bhatia, executive director for strategy and commercial development at the John Lewis Partnership, explained: “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.”
Industry research suggests the “build-to-rent” residential property market is estimated to double by 2026.
In Bromley and West Ealing, existing Waitrose shops will be redeveloped to provide new homes and improved stores.
In Reading, an empty John Lewis warehouse will be redeveloped.
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.”
John Lewis claimed that moving into the rental market would provide a “stable income” for the Partnership.
It comes as the retailer grapples with the cost of living crisis and shifting shopping habits.
The chair of the John Lewis Partnership, Sharon White, recently warned it will be “tough” to pay staff an annual bonus.
Results released in September showed losses ballooned to £99million for the six months to the end of July, up from £29million the same time last years.
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