The John Lewis Partnership has unveiled the top three locations in the UK where the retailer plans to launch its new rental properties.
The three proposed sites include buildings on the Waitrose stores in Bromley and West Ealing in Greater London, as well as the replacement of a vacant John Lewis warehouse in Mill Lane, Reading.
The department store chain said locals in Bromley and West Ealing will be invited to several rounds of public consultations over the coming months to discuss the proposed redevelopment of the Waitrose stores.
The sky at home? The John Lewis Partnership has presented the first three locations of its “built for rent” housing plan.
Waitrose’s stores in Bromley and West Ealing would also be “significantly improved as part of the proposals,” according to the group.
The John Lewis Partnership confirmed that the detailed designs will not be shown until the end of the year “to give residents a chance to shape plans at this early stage”.
He added: “Subject to comments received during these consultations, our intention would be to submit planning applications for Bromley and West Ealing next year. A public consultation period for Mill Lane, Reading, will take place at the end of ‘this year.’
Nina Bhatia, Executive Director of Strategy and Business Development for the John Lewis Partnership, said: “Everything people love about our brand: quality, trust and service, we want to bring the experience of renting a home with us.
Your new home? The John Lewis Partnership plans to build on this Waitrose store in West Bromley
“Our role as a developer and operator, as well as an established local entrepreneur and entrepreneur, indicates our ambition to bring long-term value to each of these communities.
“Helping to create housing has always been at the heart of what we do and now we have a unique opportunity to use our experience and skills in new ways to deliver much needed new housing.”
It has been reported that the association’s 80,000 workers could be offered discounted rents.
According to the retailer, the proposed developments will be part of the growing real estate market ‘built for rent’ in the UK.
The group wants to promote standards in the rental market, both through its role as a developer and when managing buildings as a business.
He said the proposed homes and developments “would offer the confidence, quality and service that people expect from John Lewis.”
He added: “The houses will be built for homes of different sizes and will be designed according to our high standards.
“Residents would have options for short- and long-term ownership and have their homes furnished by John Lewis. Create a sense of community by incorporating shared spaces and facilities such as roof gardens and fitness studios and exploring how schemes can play a role in the wider community would be an integral part of our approach.
Land rents will not apply, as all homes will be rental properties, said a spokesman for the John Lewis Association, “This is money.”
As it moves further away from retail to try to bolster its finances, the John Lewis Partnership plans to deliver 10,000 rental properties across the UK over the next decade. The group wants 40 percent of its profits to come from outside retail in 2030.
The John Lewis Partnership already owns most of Leckford, a village in Hampshire, where every house with a green door is a partnership property.
What is “build for rent” and how does it work?
The John Lewis Partnership plans to develop housing through the “build for rent” model. This means that the properties will be rented instead of sold.
They are common in other countries, especially Germany, France, and the United States.
In most cases, schemes like this usually offer longer rental terms and are managed by the site owner or operator in general.
With rising property prices, some believe there is a high demand for high quality rental alternatives. It is believed that construction for rent may one day fill the gap in available rental properties left by landlords leaving the sector after a series of regulatory and tax changes they have undergone.
For companies such as the John Lewis Partnership, regular rental income is an important advantage of “building for rent” as it is the growing value of the brick or mortar asset or property.
For potential tenants, some may find the idea of a single corporate landlord and decent nearby services appealing, although tenants should be aware of all the potential costs, charges, and fees involved before taking the plunge and opting for one. rent in a rental building. home.
Retail turbulence
The John Lewis Partnership has not been unaware of its fair share of financial problems and turmoil in recent years, and its mission is to increase its profits and revenues through other channels.
In March, the John Lewis Partnership said its 78,000 employees would share a £ 46 million bonus pot, equivalent to 3% of salary for each worker.
Department stores abandoned their bonus scheme during the pandemic for the first time since 1953, as stores were closed and the chain lost millions. John Lewis suffered his first annual loss of £ 571 million in 2020.
But in its last financial year, the group’s underlying profits rose above the crucial £ 150m level set for the return of bonuses.
Ambition: The John Lewis Partnership wants to build 10,000 rental properties over the next decade
The retailer closed eight department stores during the pandemic and has reduced the number of workers by about 2,000, including the plant’s jobs.
The department store chain John Lewis reached its highest sales of £ 4.9 billion a year through January 29, 8% more than last year. Sales at Waitrose reached £ 7.44 billion, up 1% from a year ago.
The chain’s last annual profit before outstanding items recovered to £ 181 million, up 38 per cent. Global pre-tax losses fell to £ 26 million, which is £ 491 million better than the previous year.
The group is changing its motto “It has never been sold without knowing it” to a commitment to “Quality and Value”, which will apply to both online and offline stores.
But with inflation rising and millions of households up and down the UK feeling financial pressure, 2022 looks set to be another difficult retailer, and it remains to be seen how John Lewis’ central arm will form during the rest of the year. .
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