John Lewis advisers have warned that it faces “extreme challenges” in making a profit from its scheme to convert parts of its stores into new homes.
The plans would see 428 new flats built above a Waitrose in West Ealing and 353 in Bromley, with ambition to deliver 35% affordable housing on each scheme.
However, this could cost significantly more to build than it would be worth on paper, as planning documents show it risks delivering a negative return of £57m, The Telegraph reported.
Property consultant Quod, which carried out the early analysis, said the “financial viability of the scheme is extremely challenging”.
According to existing predictions, John Lewis’ housing scheme would be worth in the region of £183m based on present-day values, but cost roughly £240m to carry out.
The housebuilding project comes under one of the three housing schemes the business currently has, under part of John Lewis Partnership chair Dame Sharon White’s attempts to diversify the company away from retail.
The business aims to generate two-fifths of its profits via non-retail areas by 2030.
I am so confused by this. There is an opportunity to create 428 homes in the unused structures above ITZA retail premises, the likely capital growth will cover the investment risk in under 7 years and someone thinks that’s an extreme challenge?
I think someone’s trying to make the case for not doing such a high percentage of “” affordable”” housing.
Here’s the thing the cleaners, caretakers, waiting staff, the store staff, key workers and junior civil service that keep places like London working NEED somewhere close by to live, commuting isn’t a practical option
Gentrification gone mad?
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Robert I think you’re mixing up NEED with WANT. A need is something you can’t live without:
– Accommodation
– Water
– Heating
– Electricity
A want is something you would like i.e. to live closer to work. The vast majority of London commutes and anything up to an hour is fairly normal. Commuting is fairly practical and a fair few million Londoners do it every day.
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Thanks AW, I did a needs satisfaction course in February 1985 and its been the foundation of understanding all I’ve done since.
You’ve picked up on one thing I’ve posted and not given consideration to why commuting isn’t always viable.
I can think of at least 1 billion reasons how understanding the dynamic of society is worth at least £100million of uncontested revenue for agents
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Dame Sharon White strikes again. What she has done to John Lewis and Waitrose is criminal.
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