Asda is in talks for a sale and leaseback property deal on some 20 of its supermarkets, as part of a £400m deal to help fund its wider turnaround plans for the grocery business.
The Leeds-based grocery giant is reportedly close to striking a deal with US investment giant Blue Owl Capital, according to Sky News.
A deal could be finalised in the coming weeks and comes as Asda looks to ramp up its investment in pricing, product availability and cost efficiencies under chair Allan Leighton and his turnaround plans.
If a deal can be reached, it would allow the grocer to unlock value from its property portfolio while also continuing to operate supermarkets.
In 2023, Asda raised £650m through a sale-and-leaseback deal on its property with US-based firm Realty Income.
While Asda declined to comment directly on the talks, a spokesperson told Sky News: “Sale-and-leaseback transactions have been a feature of the retail industry for many years.
“While maintaining a strong freehold base remains central to Asda’s property strategy, we will consider suitable opportunities to unlock value from our property portfolio as part of our material programme of investment into the business.”
The grocer has been ramping up its turnaround strategy under Allan Leighton, after owner TDR Capital bought out former co-owner Zuber Issa’s stake in the business last year.
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