Asda owners consider £500m portfolio sale
The owners of Asda are reportedly considering a £500m sale of some of the supermarket retailer’s property portfolio in an effort to reduce debts.
The billionaire Issa brothers, Mohsin and Zuber, with the backing of TDR Capital, are said to be in negotiations with Australian firm Macquarie Asset Management regarding a sale.
The deal would see Macquarie purchase the ground rent leases of around 50 Asda stores, with a clause allowing the supermarket retailer to reassume control of the sites at the end of the 50-year term.
Asda would then be able to pay lower rents at these stores while raising higher amounts of equity.
The Issa brothers acquired the Asda estate from Walmart in 2021 in a deal worth £6.8bn, however some £2.75bn of debt was included in the transaction.
In March, it was reported that the billionaire brothers were eyeing the sale-and-leaseback of the entire Asda estate, worth £8.6bn.
The supermarket retailer then disposed of 25 stores to American investor Realty Income in a sale-and-leaseback deal worth £650m.
Asda recently reported an increase in sales during the second quarter, which the supermarket said reflected the “strength” of its customer proposition.