Supermarket giant Asda has confirmed a major financial move, agreeing to sell 24 of its stores and a key distribution depot in a deal worth £568 million.
A Strategic Move to Strengthen Finances
The debt-laden grocer stated that this significant property disposal is a strategic step to bolster its financial standing. The company, which reported a net debt of £3.8 billion at the end of 2024, will immediately lease back all the sites, ensuring they continue to operate as normal.
An Asda spokesman explained the strategy, saying: "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."
The Buyers and the Deal Structure
The transaction involves two separate purchasers. American investment firm Blue Owl Capital will acquire ten of the stores alongside the Asda depot located in Lutterworth, Leicestershire.
A further ten stores will be purchased by a joint venture between Blue Owl and Supermarket Income REIT. An additional four stores will be bought by London-based DTZ investors.
All properties will be leased back to Asda on long-term agreements. The initial lease period is for 25 years, with options in place to extend the leases by a further ten years.
No Impact on Shops or Staff
Asda has moved to reassure customers and employees, confirming that the sale and leaseback arrangement will have no operational impact. All 24 stores will remain open for business as usual.
Critically, the company has confirmed that the move will result in no job losses for its workforce. This forms part of wider turnaround plans being implemented under the leadership of boss Allan Leighton.
The company is scheduled to report on its third-quarter trading and updated financial position next week, providing further insight into its performance.
