// Asda’s billionaire owners the Issa brothers agree on $1.5bn sale and leaseback deal on a proportion of its US property portfolio
// EG Group has sold 415 store assets on the US east coast to Realty Income Corporation
Asda’s billionaire owners the Issa brothers have sold a proportion of its retail and petrol empire’s US property portfolio in a sale and leaseback deal worth $1.5bn.
EG Group has sold 415 store assets on the US east coast to Realty Income Corporation.
The group will continue to operate and trade the sites while paying an initial annual rent of $103m.
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The group said it received a “high degree of interest from multiple blue-chip investors and attractive terms”.
It added that the net proceeds of the deal, expected to be completed in the second half of 2023, will be used to repay its debts, which currently stand at £9bn.
Co-chief executive Zuber Issa said: “Today’s announcement demonstrates the progress we continue to make to put in place a robust capital structure for the medium term that will underpin our long-term strategy and represents an important first step in this process.”
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