John Lewis is partnering with global investment business abrdn to create 1,000 new homes for rental.

The £500 million multi-decade venture is part of the retailer’s plan to “diversify the business” and use its “significant property assets".

The company said that the partnership would help it reach 10 per cent of its target to develop 10,000 homes over the next 10 years.

John Lewis will develop and manage the new sites, which it hopes will give it a stable stream of income, and has committed to affordable housing and sustainability based on its existing 2035 net-zero plans.

John Lewis said that, subject to planning permission, in Bromley and West Ealing it will redevelop Waitrose shops to provide new homes and improve stores.

In Reading it is planning to develop a vacant John Lewis warehouse.

“Our partnership with abrdn is a major milestone in our ambition to create much-needed quality residential housing in our communities,” said Nina Bhatia, executive director for strategy and commercial development at the John Lewis Partnership. “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."

The company is aiming to submit its first planning applications next year, with a first public consultation for the site in Reading expected in 2023.

“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," said Neil Slater, head of real assets, abrdn. "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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