According to Sky News, Asda and asset management firm Blue Owl Capital are in “advanced talks”, with the retailer planning to lease back the stores from Blue Owl Capital and use the cash generated from the sale to fund its recovery plans.
Blue Owl Capital is reported to have emerged as a frontrunner to acquire the stores, which Sky News said could be agreed within weeks.
In response to Food Manufacture’s request for comment, an Asda spokesperson said: “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 completed a similar sale and leaseback deal with Realty Inc worth £650 million.
Food Manufacture has also reached out to Blue Owl Capital for comment.
Just a few days ago, the retailer announced plans to invest £11.8 million in a series of store upgrades across the north of England. More than £7 million of that cash was earmarked for upgrading stores across Yorkshire by the end of 2025, while £4.6 million will be spent on two stores located in Grimsby and Stockton respectively.
Commenting on the plans, chief commercial officer for retail Liz Evans said: “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 modernise these Yorkshire stores and further enhance the shopping experience.”
