For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails
Sign up to our free breaking news emails
Sign up to our free breaking news emails
Grocery giant Asda has agreed to sell 24 supermarket sites and a key depot in a deal worth £568 million.
In a move to improve its finances, the debt-laden retailer will utilise a sale-and-leaseback arrangement, allowing it to continue operating the locations without interruption.
The assets will be acquired by two distinct investment groups. US investment firm Blue Owl Capital is set to purchase ten stores and Asda’s depot in Lutterworth, Leicestershire.
A further ten stores will be sold to a joint venture between Blue Owl and Supermarket Income REIT, a real estate investment trust. London-based DTZ investors will acquire the remaining four sites.
Asda has assured that all affected locations will continue to operate as normal, with no changes anticipated for their employees.
Both deals will see Asda rent back the properties on 25-year lease deals, with options to extend by a further 10 years.
Asda has sealed a sale-and-lease back deal for 24 stores and a depot (Rui Vieira/PA)
It is understood the deals are part of efforts to boost Asda’s financial position as it continues to push through turnaround plans to improve its performance under boss Allan Leighton.
An Asda spokesman said: “Asda’s property strategy is centred on maintaining a strong freehold base while also taking a considered and selective approach to unlocking value from our estate where appropriate.
“These transactions reflect that approach, enabling us to realise value from the sites while retaining full operational control.”
The company is set to report on its trading over the third quarter and latest financial position next week.
Asda had £3.8 billion in net debt at the end of 2024, according to its latest full-year accounts.
