John Lewis has partnered with investment firm Abrdn on a £500m, multi-decade partnership to deliver part of its rental homes target.
The department store giant announced the joint venture today and said it would go towards delivering the first 1,000 of the 10,000 rental homes it will open in Reading and Bromley and West Ealing, Greater London.
The deal will see John Lewis Partnership develop and manage the proposed new sites and includes commitments to affordable housing and sustainability tied to its existing 2035 net-zero pledge.
The retailer said the number of build-to-rent homes being built in the UK is estimated to double to more than 30,000 a year by 2026 and that there is a shortfall of 75,000 such properties in London alone.
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.”
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