UK’s John Lewis to convert some shops into housing
Britain’s shortfall in rental accommodation is likely to worsen as the government’s ‘help to buy’ scheme comes to an end
02 December 2022 - 13:00
byJames Davey
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A customer wearing a protective face mask browses handbags in the womenswear department inside a John Lewis Partnership Plc department store in London, U.K., on Thursday, July 23, 2020. Picture: SIMON DAWSON/BLOOMBERG
London — British retailer the John Lewis Partnership is to turn some of its stores and a vacant warehouse into homes, in a £500m joint venture with investment company Abrdn.
The employee-owned partnership, which owns a department store chain as well as upmarket grocer Waitrose, is trying to diversify its business and set out a plan in 2020 to generate 40% of its profit from outside retail by 2030.
It said the deal with Abrdn would create 1,000 rental homes in Bromley and West Ealing in London, and Reading, southern England, delivering 10% of its ambition to build 10,000 new homes over the next decade.
Of those, 5,000 would be from land on John Lewis’s existing estate and the homes would range from one- to three-bed apartments.
In Bromley and West Ealing, Waitrose shops would be redeveloped to provide new homes and improved stores, while in Reading, a vacant John Lewis warehouse would be redeveloped.
The partnership said Britain’s shortfall in rental accommodation was set to worsen as the government’s “help to buy” scheme comes to an end. John Lewis said in London alone there was a shortfall of 75,000 rental properties.
“Our partnership with Abrdn is a major milestone in our ambition to create much-needed quality residential housing in our communities," Nina Bhatia, the partnership's executive director for strategy and commercial development, said.
John Lewis has also diversified into product rental and resale and has expanded its financial services business into savings and insurance.
In September, it reported a loss for the first half of the year and warned that the outlook for the rest of 2022 was highly uncertain due to the impact of the cost of living crisis on discretionary spending.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
UK’s John Lewis to convert some shops into housing
Britain’s shortfall in rental accommodation is likely to worsen as the government’s ‘help to buy’ scheme comes to an end
London — British retailer the John Lewis Partnership is to turn some of its stores and a vacant warehouse into homes, in a £500m joint venture with investment company Abrdn.
The employee-owned partnership, which owns a department store chain as well as upmarket grocer Waitrose, is trying to diversify its business and set out a plan in 2020 to generate 40% of its profit from outside retail by 2030.
It said the deal with Abrdn would create 1,000 rental homes in Bromley and West Ealing in London, and Reading, southern England, delivering 10% of its ambition to build 10,000 new homes over the next decade.
Of those, 5,000 would be from land on John Lewis’s existing estate and the homes would range from one- to three-bed apartments.
In Bromley and West Ealing, Waitrose shops would be redeveloped to provide new homes and improved stores, while in Reading, a vacant John Lewis warehouse would be redeveloped.
The partnership said Britain’s shortfall in rental accommodation was set to worsen as the government’s “help to buy” scheme comes to an end. John Lewis said in London alone there was a shortfall of 75,000 rental properties.
“Our partnership with Abrdn is a major milestone in our ambition to create much-needed quality residential housing in our communities," Nina Bhatia, the partnership's executive director for strategy and commercial development, said.
John Lewis has also diversified into product rental and resale and has expanded its financial services business into savings and insurance.
In September, it reported a loss for the first half of the year and warned that the outlook for the rest of 2022 was highly uncertain due to the impact of the cost of living crisis on discretionary spending.
Reuters
Tiger Brands mulls over private brands as profit soars and it raises dividend
Bumper Black Friday sees the well-heeled splash out
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Nedbank partners with the automotive industry to drive competitiveness
CHRIS GILMOUR: TFG deserves credit for not being what it used to be
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.