Supermarkets are selling their stores to raise quick cash.
And Asda sold 25 supermarkets to US property investor Realty Income Corporation in a £650million deal.
Asda used the cash to buy the majority of its owner EG Group’s UK business.
The billionaire Issa brothers, Zuber and Mohsin, said the deal had helped EG to make ‘significant progress’ in reducing its debts.
They bought Asda in a controversial £6.8 billion debt-fuelled deal three years ago.
Asda and Morrisons – which both have large debt piles – led the way with deals to offload their shops and warehouses last year.
Although they sell the property, the grocers can lease it back from the new owner and continue running the sites.
These sale and leasebacks accounted for close to half of property deals in 2023 – compared with just one per cent in 2022 – according to data from research group Colliers.
The sale and leaseback deals help unlock cash tied up in real estate to pay down debt.
Quick cash: Asda and Morrisons – which both have large debt piles – led the way with deals to offload their shops
Morrisons said it completed around £450million of sale and leaseback transactions during its financial year to October 29, 2023.
And Asda sold 25 supermarkets to US property investor Realty Income Corporation in a £650million deal.
Morrisons is sat on a net debt pile of £8.6billion. Asda has £4.2billion.
The companies declined to comment.
