(Bloomberg) -- John Lewis Partnership Plc has teamed up with investment firm abrdn Plc to build about 1,000 new homes in and around London.
The £500 million ($613 million) joint venture will see new homes built on the sites of Waitrose shops in the London districts of Bromley and West Ealing. A vacant John Lewis warehouse in Reading, a town west of the city, will also make way for new homes if planning permission is obtained.
The proposals are part of John Lewis’s wider plan to deliver 10,000 homes over the next decade. The department store chain is looking to earn 40% of profits from outside retail by 2030, making it a key player in Britain’s build-to-rent property market.
John Lewis Picks London Sites for New Homes Over Waitrose Shops
For John Lewis the property push is part of the turnaround strategy under chair Sharon White, a former telecommunications regulator who started the role in 2020. White is shutting stores and cutting costs to return the company to profit by 2025.
“The move underlines our commitment to build on the strength of our brands to diversify beyond retail,” said Nina Bhatia, executive director for strategy and commercial development at John Lewis.
John Lewis previously said one of the most important factors in picking West Ealing and Reading was their close proximity to the newly opened Elizabeth Line. London boroughs have a track record for seeing house prices grow on strong transport links.
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