Asda is making significant changes by divesting 24 stores and a depot to enhance its financial stability. The grocery chain plans to raise £568 million through the sale of these properties, which will then be leased back for continued operation. Two separate buyers have committed to acquiring a total of 24 stores and a distribution depot from Asda.
All locations will remain operational with no impact on employees, as emphasized by Asda. Blue Owl Capital, an American investment firm, will purchase ten stores and a depot in Lutterworth, Leicestershire, while another ten stores will be acquired by Blue Owl’s joint venture with Supermarket Income REIT. Additionally, four stores will be bought by DTZ investors based in London. Asda will lease back these properties for 25 years with options for further extension.
These transactions are part of Asda’s efforts to strengthen its financial position as it implements turnaround strategies under the leadership of Allan Leighton. An Asda spokesperson highlighted the company’s property strategy of maintaining a robust freehold base while unlocking value from its estate. The company is set to report its third-quarter trading performance and financial status next week. As per its most recent full-year accounts, Asda had a net debt of £3.8 billion by the end of 2024.