Asda has revealed a significant move impacting 24 stores and a distribution depot. The company has made a decision to sell off a substantial number of supermarkets and a depot to improve its financial position.
The grocery chain, burdened with debt, announced plans to generate £568 million by selling these properties. The stores and depot will be sold to two different buyers, with the intention for Asda to lease them back and continue operations. American investment firm Blue Owl Capital will acquire ten stores and an Asda depot in Lutterworth, Leicestershire, while another ten stores will be purchased by Blue Owl’s joint venture with Supermarket Income REIT.
Additionally, four stores will be purchased by DTZ investors based in London. As part of these transactions, Asda will rent back the properties through 25-year lease agreements, with the option to extend for an additional ten years.
These deals are part of Asda’s efforts to strengthen its financial position and execute turnaround plans to boost performance under the leadership of Allan Leighton.
A spokesperson for Asda stated, “Asda’s property strategy focuses on maintaining a robust freehold base while strategically unlocking value from our estate when appropriate. These transactions align with our approach, allowing us to realize value from the properties while retaining operational control.”
The company is set to release its third-quarter trading results and current financial status next week. As per its latest annual accounts, Asda had a net debt of £3.8 billion by the end of 2024.