Britain's John Lewis Partnership quits build to rent business

LONDON, Feb 25 (Reuters) - ​British retailer the John Lewis Partnership said on Wednesday it is ​withdrawing ‌from its Build-to-Rent property business, blaming a "fundamental shift" in the economic ⁠conditions that underpinned the venture when ⁠it launched in 2020.

The UK's ​largest employee-owned business, which runs John Lewis department stores and the upmarket Waitrose supermarket chain, said the move is part ​of ‌a broader strategic decision to refocus on its core retail brands under executive chair Jason Tarry.

The partnership's venture into BTR formed part of former chair Sharon White's ​strategy to diversify. She had a now-abandoned target to generate ‌40% of the partnership's revenue from outside retail.

PROPERTY AMBITION WAS BASED ON DIFFERENT ENVIRONMENT

“Our ‌rental property ambition was based on a very different financial environment: one with more stable investment returns, lower borrowing costs ​and more affordable costs to build homes," said a partnership spokesperson.

Despite not ‌building a single home, the partnership was "proud" of what it achieved in BTR, the spokesperson said, noting the ⁠progression of ⁠three planning applications for about 1,000 homes ‌and the managing of third-party BTR homes at four sites.

Tarry, a former ​Tesco ​executive, has focused on modernising

John Lewis and ‌Waitrose stores, enhancing digital platforms and improving the supply chain.

The partnership is expected to publish full-year results next month. (Reporting by James Davey; Editing by Toby Chopra)