Asda Sale and Leaseback Deal Raises £568m
Asda has agreed to a sale and leaseback arrangement involving 24 supermarkets and a depot, raising a total of £568 million to strengthen its financial position.
Details of the Transaction
A total of 20 stores and the group's depot located in Lutterworth, Leicestershire, have been sold and leased back. Specifically, 10 stores and the depot were sold to the US investment firm Blue Owl Capital. Another 10 stores were sold to a joint venture between Blue Owl and Supermarket Income REIT (a real estate investment trust).
Additionally, four stores—Small Heath, Colindale, Coventry Abbey Park, and Killingbeck—were sold to DTZ Investors and leased back to Asda.
Lease Agreements and Operational Control
All the properties involved are under 25-year lease agreements, with an option to renew for an additional 10 years at each renewal stage. Asda will continue to operate the stores normally and assured that there will be no changes affecting staff.
"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."
Summary of Properties Sold
- 10 stores plus the depot sold to Blue Owl Capital
- 10 stores sold to Blue Owl's joint venture with Supermarket Income REIT
- 4 stores sold to DTZ Investors (Small Heath, Colindale, Coventry Abbey Park, Killingbeck)
This strategic sale and leaseback deal offers Asda liquidity while retaining operational control over its assets with long-term lease commitments.
Author's Summary: Asda's £568m sale and leaseback deal on 24 stores and a depot reflects a strategic balance of raising funds while keeping operational control and protecting staff stability.