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Asda Sells 24 Stores and a Depot in £568m Sale-and-Leaseback

Proceeds are reported to target a Walmart-linked liability, with Asda retaining the sites on 25-year leases.

Overview

  • Blue Owl Capital is buying ten stores and the Lutterworth, Leicestershire depot, a Blue Owl–Supermarket Income REIT joint venture is taking another ten stores, and DTZ Investors is acquiring four.
  • Asda says all locations will keep trading as normal with no changes for employees, and each property carries an initial 25-year lease with a 10-year extension option.
  • FT-cited reports say the cash will be used to repay a debt owed to former owner Walmart that accrues payment-in-kind interest, rather than to reduce broader borrowings or fund investment.
  • Union GMB condemned the move as asset stripping, and analysts warned that higher lease liabilities could weigh on credit quality as Asda works through a heavy debt load.
  • Asda, which reported £3.8bn net debt at end-2024, will give a third-quarter trading update next week, and identified DTZ’s four sites as Small Heath, Colindale, Coventry Abbey Park and Killingbeck.