Issa brothers consider sale of £8.6bn Asda estate
The billionaire owners of Asda are reportedly targeting a sale and leaseback of their £8.6bn Asda estate in an effort to reduce debt as interest rates continue to rise.
The Issa brothers, who also own petrol forecourt group EG Group, have called in property experts to consider the estate’s future, The Telegraph has reported.
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.
As interest rates continue to increase and the cost-of-living crisis squeezes budgets, the brothers have come under increasing pressure to settle the debt. The sale and leaseback of Asda’s estate may reduce interest payments but could lead to higher rent.
As part of the measures, the Issa brothers could still keep a number of freehold sites.
The brothers’ EG Group recently saw revenue increase by a quarter, following a number of estate sales in the United States worth over $1.5bn (£1.25bn).