The owner of John Lewis has submitted plans for an £80 million development of 215 rented apartments, a tenth of which will be affordable, on the site of a disused Reading distribution centre.
John Lewis Partnership (JLP), which owns Waitrose supermarkets and its eponymous department store, said the site would feature two garden spaces, including one for children, as well as shared spaces for fitness, working from home and socialising.
If the plans are approved, construction could begin in 2026, with residents expected to be able to move in by 2028. The majority of the funding for the project will come from financial group Abrdn, a partner of John Lewis.
Catherine Russell, JLP's director of homebuilding for rent, said: “We have worked closely with planning officers at Reading City Council, local residents and organisations to propose schemes that will benefit residents and the whole community by transforming a disused industrial site into vibrant homes for rent.”
“Revitalising brownfield land offers a fantastic opportunity to provide a significant number of homes which can alleviate some of the growing pressures on Reading’s housing market.”
“Not only are these homes developed by us, they are also managed by us, which means we can provide a quality service and have the assurance that the homes won't be sold off, as is often the case in the rental market.”
The move to develop the site across from Reading's Oracle Shopping Centre is part of the group's aim to diversify its revenue sources beyond retail, including renting homes and offering financial services.
In 2021, John Lewis pledged to build and rent around 5,000 homes and manage a further 5,000 as part of bold plans to make 40% of its profits from non-retail sources by 2030. Earlier this year, the 40% target was abandoned, with the group's chair Sharon White blaming the economic situation.
The JLP recently received planning permission to transform the former Waitrose site in Bromley, south London, into more than 300 homes for rent. The group is appealing its appeal to the planning inspectorate as local opposition forces protracted negotiations with the council over plans for more than 400 homes, including one 19 storeys, on the site of another former supermarket in west Ealing.
This latest pledge comes just weeks before former Tesco executive Jason Tully is appointed as John Lewis' new chairman, with a particular focus on improving the retailer's performance.
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Tully's arrival comes just as the group is beginning to accelerate expansion after years of cost-cutting: Waitrose recently announced plans to open 100 new convenience stores and four new hypermarkets over the next five years.
Peter Lewis, head of department stores, is also expected to announce future plans ahead of JLP's half-year results next week.
