The John Lewis Partnership has announced a £500 million multi-decade joint venture with global investment company abrdn to deliver around 1,000 new homes across three communities.

The deal marks a milestone in the Partnership’s plans to use its significant property assets to build much-needed residential homes and diversify our business. The joint venture will help us to reach 10 percent of our ambition to build 10,000 new homes over the next decade.

Within the UK's growing 'built-to-rent' property market, this is a long-term joint venture that brings together abrdn’s experience as one of Europe’s largest residential investment managers together with the trust, service and quality synonymous with the John Lewis and Waitrose brands.

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The deal will see the Partnership develop and manage the proposed new sites and includes commitments to affordable housing and sustainability tied to our existing 2035 net-zero pledge.

In Bromley and West Ealing in Greater London, subject to planning permission, Waitrose shops will be redeveloped to provide new homes and improved stores. In Reading, a vacant John Lewis warehouse will be redeveloped. The sites were chosen according to their central location and proximity to transport links.

The 'build-to-rent' residential property market is estimated to double with 30k build-to-rent homes completed annually by 2026. The sector has a key role to play in addressing the shortfall in rental homes, which is set to increase further with the government’s help to buy scheme now coming to end. In London alone there is a shortfall of 75,000 rental properties.