John Lewis signs £500m build-to-rent deal with City investment giant

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John Lewis is on its way to becoming a major residential landlord after signing a £500m joint venture deal with global investment firm abrdn.

It will use its property assets to build 1,000 build-to-rent homes (BTR) in Bromley, West Ealing and Reading, marking the start of its 10-year plan to create a 10,000-home portfolio. The deal will see John Lewis develop and manage the new sites which will include affordable housing as it looks to create a stable income following recent financial losses. 

In Bromley and West Ealing, subject to planning permission, Waitrose shops will be redeveloped to provide new homes and improved stores, while in Reading, a vacant John Lewis warehouse will be redeveloped. The sites were chosen due to their central location and transport links. 

Savills recently predicted that the number of BTR homes will increase five-fold over the next decade to 380,000 in the UK.

Key role

John Lewis believes the BTR sector has a key role to play in addressing the shortfall in rental homes. Nina Bhatia (pictured), executive director for strategy and commercial development, says residents can expect homes furnished by the retailer, with first-rate service and facilities.

She adds: “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 (pictured), head of real assets at abrdn – one of Europe’s largest residential investment managers – says it wants to address the critical lack of quality rental accommodation in the UK.

“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 aims to submit the first planning applications and launch a consultation for the Reading site next year. 

Read more about John Lewis.
 

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