Neil Slater

The joint venture brings together a strong complementary set of capabilities: the extensive investment management experience of abrdn, with £7.4 billion (30,000 units) of residential assets under management, and John Lewis Partnership’s trusted brand.

It creates a unique platform for the UK’s growing build-to-rent market, which to-date, has largely been confined to specialist real estate companies. The deal remains subject to the satisfaction of agreed completion conditions.

Neil Slater, head of real assets, abrdn, said: “The critical lack of quality rental accommodation in the UK needs to be addressed, so we are delighted to partner with the John Lewis Partnership to provide the required institutional investment.

“The ambitions and responsible ethos of our brands both strongly align, and our partnership should offer investors long-term returns and give residents confidence in a top-quality living experience.”

“We are really pleased to continue to expand abrdn’s capabilities in real estate and evolve our client offering through this exciting partnership.”

Nina Bhatia, executive director for strategy and commercial development at the John Lewis Partnership, added: “Our partnership with abrdn is a major milestone in our ambition to create much-needed quality residential housing in our communities.

“Our residents can expect homes furnished by John Lewis with first-rate service and facilities.

“The move underlines our commitment to build on the strength of our brands to diversify beyond retail into areas where trust really matters.”