John Lewis secures £500m housing deal

‘Our partnership with Abrdn is a major milestone in our ambition to create quality residential housing’

JOHN LEWIS has agreed a £500m deal to transform supermarkets and warehouses into 1,000 rental homes as part of a house-building push by the retailer.

The partnership unveiled a £500m joint venture with Abrdn, the investment company, to build its first tranche of rental properties by redeveloping two Waitrose stores and an empty John Lewis warehouse in Bromley and West Ealing in London, and Reading.

The properties will consist of one, two and three-bedroom flats and will be kitted out in John Lewis furnishings. The company is also expected to consider eco-friendly elements, such as heat pumps that could be used to heat homes.

It is aiming to build 10,000 homes in the next decade, many of them on redeveloped John Lewis sites – something it said would create a “stable income” for the business as it diversifies away from retail. By 2040, John Lewis has said it will make 40pc of its profits outside retail.

It comes amid what Dame Sharon White, the John Lewis Partnership chairman, has said is proving a tougher period than the pandemic, as the costof-living crisis hits consumer spending. She has been working on a turnaround and has already closed about a third of John Lewis stores.

The two Waitrose store redevelopments are subject to planning permission, with applications due next year.

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.”