UK: The John Lewis Partnership has agreed a £500 million multi-decade JV with investment giant abrdn to deliver around 1,000 BTR homes across three local communities.
The deal marks a milestone in the Partnership’s plans to use its property assets to build residential homes and diversify its business. The joint venture will help JLP to reach 10 per cent of its ambition to build 10,000 new homes over the next decade.
The deal will see the Partnership develop and manage the proposed new sites and includes commitments to affordable housing and sustainability tied to our existing 2035 net-zero pledge. “We want to create homes that will provide a stable income for the Partnership, and moving into housing aligns with our purpose to make a positive difference for our Partners, customers and communities,” said a JLP statement.
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 sites were chosen according 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.”
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.”