Asda is reportedly in advanced talks to sell and lease back around 20 of its supermarkets as part of a £400m property deal aimed at supporting its turnaround plans.
The grocer is close to striking a deal with US investment giant Blue Owl Capital, according to Sky News, with an agreement potentially being finalised in the coming weeks.
It comes as the Leeds-based supermarket looks to ramp up investment in pricing, product availability and cost efficiencies under chair Allan Leighton.
If agreed, the deal would see the business unlock value from its property portfolio while continuing to operate the stores involved. A similar move in 2023 saw the retailer raise £650m through a sale-and-leaseback deal with US-based Realty Income.
While Asda declined to comment directly on talks with Blue Owl, 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 process is being led by real estate investment bank Eastdil.
Majority-owned by private equity firm TDR Capital, Asda has been ramping up its turnaround strategy following its acquisition of co-founder Zuber Issa’s stake last year.
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