Asda Offloads 24 Stores and Lutterworth Depot for £568m
Asda has completed the sale and leaseback of 24 stores and its Lutterworth depot, generating £568 million. The company reportedly plans to use the funds to repay debt owed to Walmart.
Ten stores along with the Lutterworth depot were sold to Blue Owl Capital, another ten to a joint venture between Blue Owl and the property investment fund Supermarket Income REIT. The remaining four sites, located in Small Heath, Colindale, Coventry Abbey Park, and Killingbeck, were acquired by DTZ Investors.
All properties are under 25-year leases with an option to extend for an additional 10 years upon renewal. The deals are part of Asda’s effort to balance asset ownership with strategic capital release.
“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,” said an Asda spokesperson.
The spokesperson added that the transactions allow the retailer to “realise value from the sites while retaining full operational control.”
Supermarket Income REIT confirmed the joint venture’s £196 million acquisition of ten high-performing omnichannel supermarkets located in areas such as Cornwall, Wales, and County Durham.
“These transactions further demonstrate our ability to deliver on our strategy, as we continue to successfully drive returns for our shareholders,” said Rob Abraham, CEO of Supermarket Income REIT.
Blue Owl was advised by Atrato during the process.
Author’s summary
Asda’s £568m sale-and-leaseback deal with multiple investors boosts liquidity while preserving operational control over its retail network.