John Lewis agrees £500m JV to deliver 1,000 homes

John Lewis Partnership has agreed a £500m joint venture to deliver 1,000 homes in Bromley, West Ealing and Reading. 

The retailer has signed the multi-decade JV with global investment company abrdn, which it said is a “major milestone” in its ambition to build 10,000 built-to-rent homes in the next few years. 

Nina Bhatia, John Lewis’ 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 business announced last year its ambition to build 10,000 homes and revealed the location for the first 1,000 properties this summer. 

It is currently consulting with local communities in the three locations on its plans. It wants to build homes where it has shops in Bromley and West Ealing, and expects to submit planning applications next year. In Reading, the proposal is to redevelop a vacant John Lewis warehouse and hold the first public consultation on the plans next year. 

John Lewis announced in March last year it wanted 40% of its profits to come from housebuilding. 

It said it wanted to “create homes that will provide a stable income for the partnership” and “make a positive difference for our partners, customers and communities”. 

The deal with abrdn will ensure sustainable and affordable homes are built, the partnership said. 

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 highlighted Savills’ figures, which estimated the ‘build-to-rent’ residential property market will double with 30,000 build-to-rent homes completed annually by 2026.