Asda announces sale and leaseback arrangement for stores and depot

Asda has reached a sale and leaseback agreement on 24 stores and its Lutterworth depot with two separate buyers.

The deals have raised a total of £568 million.

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Four stores in Small Heath, Colindale, Coventry Abbey Park and Killingbeck have been sold to DTZ Investors and leased back.

In addition, 20 stores and the Lutterworth depot have been sold to Blue Owl Capital and leased back.

All properties are secured under 25-year lease agreements, with each including a contractual option to renew for an additional 10 years at every renewal point.

Asda will continue to operate all sites as usual, with no changes for staff working at the locations

An Asda spokesperson said: “Asda’s property strategy is centred on maintaining a strong freehold base while also taking a considered and selective approach to unlocking value from our estate where appropriate.

“These transactions reflect that approach, enabling us to realise value from the sites while retaining full operational control.”

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