Asda to sell off stores for £568m to shore up finances

Asda has agreed to sell a raft of supermarket stores and a depot in order to bolster its finances.

The debt-laden grocery giant said it would secure £568 million through sale of the sites, which it will then lease back and continue to operate.

Two separate buyers have agreed to purchase 24 stores in total and a depot run by the retailer.

Asda stressed that all locations will continue to run as normal, with no changes for their workers.

Ten of the stores and an Asda depot in Lutterworth, Leicestershire, will be sold to US investment firm Blue Owl Capital while a further 10 will be sold to Blue Owl’s joint venture with Supermarket Income REIT (real estate investment trust).

Asda said a further four stores will be sold to London-based DTZ investors.

Both deals will see Asda rent back the properties on 25-year lease deals, with options to extend by a further ten years.

It is understood the deals are part of efforts to boost Asda’s financial position as it continues to push through turnaround plans to improve its performance under boss Allan Leighton.

An Asda spokesman 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.”

The company is set to report on its trading over the third quarter and latest financial position next week.

Asda had £3.8 billion in net debt at the end of 2024, according to its latest full-year accounts.