// Morrisons private equity owner CD&R is marketing a porfolio of property including warehouses, fisheries and food manufacturing facilities to raise £600 million
// The private equity firm is thought to be looking to lease back the facilities
Morrisons’ new private equity owner CD&R is looking to sell a selection of property assets, including warehouses, fisheries, and food manufacturing facilities, in a bid to raise more than £600 million.
CD&R is understood to be marketing the property, which it aims to then lease back, via BNP Paribas and Knight Frank, according to The Sunday Times.
The portfolio is expected to include about two dozen property assets out of the nine distribution centres and 20 manufacturing sites.
CD&R, which last week had its takeover of Morrisons approved by the CMA, said last year that it did not intend to sell a “material” number of its 497 supermarkets for at least a year.
READ MORE: Morrisons’ £190m takeover of McColl’s to be probed by CMA
The asset sale follows Morrisons’ warning in April that rising costs and falling consumer spending were set to hit profits.
It is thought that the hit to Morrisons’ bottom line, alongside rising interest rates, has put pressure on CD&R to sell assets to reduce its exposure to debt.
The private equity firm put up around £3.4 billion for its £7billion takeover of Morrisons but the rest is being financed by lenders.
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4 Comments. Leave new
No surprise there. Let the buyer beware. They are terrible tenants, and will let you down in devistating fashion.
In other industries this would be described as “selling the family silver”. These assets were once the key to Morrison’s USP.
And so it begins the massive asset strip. Once everything is sold off and prices have risen so much to pay the rent on everything it will be the same as the department stores, unable to compete due to all the rental costs now in the business.
I smell a rat