John Lewis £500m funding deal to build 1,000 rental homes

Aaron Morby 1 year ago
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John Lewis Partnership has sealed a £500m joint venture deal with investor abrdn to fund and build 1,000 rental homes at three sites.

The sites include building over redeveloped Waitrose stores in Bromley and West Ealing in Greater London, as well as replacing a vacant John Lewis warehouse in Mill Lane, Reading.

(L-R) Planning applications for Bromley and West Ealing will be submitted early next year after local consultations.

Planning for the redevelopment of Mill Lane, Reading will follow later this year

John Lewis has committed to deliver 10,000 homes in the next 10 years – 5,000 of these will come from schemes on the Partnership’s own property portfolio.

It said it has already identified around 20 sites that it will extend or redevelop with build to rent schemes, and then become the landlord once housing is built.

John Lewis said the build-to-rent residential property market in the UK is forecast to double in size, with 30,000 new homes completed annually by 2026, according to research by the property firm Savills.

In London alone there is a shortfall of 75,000 rental properties.

Nina Bhatia, executive director for Strategy and Commercial Development at the John Lewis Partnership, said: “We continue to work with the local authorities and communities to evolve our plans and expect to announce more details for West Ealing and Bromley in due course, before aiming to submit our first planning applications next year.

“A first public consultation for the site in Reading is expected in 2023. Residents can expect homes furnished by John Lewis with first-rate service and facilities.”

Neil Slater, Head of Real Assets, 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.”

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