John Lewis has teamed up with abrdn for an exclusive £500m build-to-rent venture.
The deal will bring forward 1,000 homes in three BTR schemes in London and the South East.
The development will focus on sites in Bromley and West Ealing, Greater London, where Waitrose shops will be redeveloped to provide new homes and improved stores. In Reading, Berkshire, a vacant John Lewis warehouse will be redeveloped. The sites were chosen for their central locations and proximity to transport links.
John Lewis said: “The joint venture will help us to reach 10% of our ambition to build 10,000 new homes over the next decade.”
The joint venture will fuse John Lewis’s brand and development sites with abrdn’s investment management experience, as one of Europe’s largest investment managers with 30,000 residential units, valued at £7.4bn, under management.
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.”
In June, John Lewis told EG it was seeking development and investment partners for its debut build-to-rent schemes.
Nina Bhatia, executive director for strategy and commercial development at John Lewis, 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.”
She added: “The move underlines our commitment to build on the strength of our brands to diversify beyond retail into areas where trust really matters.”
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