Morrisons’ new owner Clayton Dubilier & Rice (CD&R) has given the green light to sell off a chunk of the supermarket’s property portfolio.

Morrisons Swansea

CD&R have given the go-ahead for the sale of manufacturing and distribution centres totalling £500m

CD&R have appointed advisors to oversee the disposal of £500m worth of Morrisons’ manufacturing and distribution centres in the UK, according to Sky News.

The plans have been in the works for some time, with the formal sale process expected to start imminently.

The move marks CD&R’s most significant one to date since it won the takeover battle last year.

As part of the firm’s bid, it pledged not to undertake substantial sale-and-leasebacks of the supermarket’s store portfolio.

The news comes as Morrisons issued a warning over the impacts of disruption from the war in Ukraine and inflation on profits – as shoppers cut their spend due to the cost-of-living crisis.

The retailer said in a statement: “We are taking steps to mitigate the impact of these developments on our EBITDA for the remainder of the year.

“Unless these conditions improve, the impact of these developments could have a material adverse effect on our sales and EBITDA for the year.”