Asda has raised roughly £600m from two sale-and-leaseback deals as its owner TDR Capital uses the supermarket’s property assets to boost its finances before a debt repayment to former owner Walmart.
According to two people familiar with the matter, the retail giant has agreed a £467m deal with asset manager Blue Owl and Supermarket Income REIT to sell and lease back 20 shops as well as a depot in Lutterworth, Leicestershire, the Financial Times reported.
The sources added that Asda would rent the properties on 25-year leases with the option to extend them by 10 years.
Under a separate £101m sale-and-leaseback deal, the supermarket is selling four stores across Birmingham, Greater London, Leeds and Coventry.
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The shops have been purchased by investors DTZ as a package and are set to be ultimately owned by three local authority pension funds.
Asda and Blue Owl declined to comment on the matter.
The grocery specialist is planning to use the money to aid its long-term capital structure, and intends to use it to help repay its debt to former owner Walmart, according to three people close to the matter.
An Asda spokesperson said: “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.
“These transactions reflect that approach, enabling us to realise value from the sites while retaining full operational control.”
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