Asda agrees sale and leaseback arrangement for stores and depot

The retailer has reached an agreement on four stores in Small Heath, Colindale, Coventry Abbey Park and Killingbeck with DTZ Investors, and on a further 20 stores and its Lutterworth depot with Blue Owl Capital.

Asda said the properties are all subject to 25-year lease agreements, with a “contractual option to renew for an additional 10 years at each renewal point”.

The grocer said it would continue to operate these sites “as normal”, with no changes for staff working at these locations.

An Asda spokesperson 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.”