According to Sky News, Asda and asset management firm Blue Owl Capital are in “advanced talks”. The retailer intends to lease back the stores from Blue Owl Capital and utilize the cash generated from the sale to support its recovery plans.
Reports indicate that Blue Owl Capital has positioned itself as the frontrunner to acquire the stores, with an agreement potentially reached within weeks, as noted by Sky News.
In response to an inquiry from Food Manufacture, an Asda spokesperson stated: “Sale-and-leaseback has been a feature of the retail industry for many years.”
“While maintaining a strong freehold base remains central to Asda’s property strategy, we will consider suitable opportunities to unlock value from our property portfolio as part of our material programme of investment into the business.”
In 2023, Asda finalized a similar sale-and-leaseback transaction with Realty Inc, valued at £650 million.
Food Manufacture has also reached out to Blue Owl Capital for further comment.
Recently, the retailer announced plans to invest £11.8 million into a series of store upgrades across northern England. Notably, more than £7 million is allocated for enhancing stores in Yorkshire by the end of 2025. Additionally, £4.6 million will be spent on two specific stores located in Grimsby and Stockton.
Commenting on these plans, chief commercial officer for retail Liz Evans remarked: “We’re proud to continue investing in the communities we serve – especially in Yorkshire, where our story began 60 years ago.”
“Following the successful refurbishment of our Pilsworth store earlier this year, we’re pleased to share our plans to modernize these Yorkshire stores and further enhance the shopping experience.”
