Asda Agrees to Sell 24 Supermarkets and Depot in £568 Million Sale-and-Leaseback Deal
- Sarah-Jayne Gratton
- 1 day ago
- 2 min read
Asda has agreed to sell 24 of its supermarkets along with a key distribution depot in a deal valued at £568 million, marking a major move to strengthen its financial position.
The agreement includes 24 retail sites and a distribution depot in Lutterworth, Leicestershire. Ownership will transfer to multiple investment groups:
US investment firm Blue Owl Capital will acquire 10 of the stores plus the Lutterworth depot.
A joint venture between Blue Owl and Supermarket Income REIT will purchase another 10 stores.
The remaining four sites will be sold to London-based DTZ Investors.
Asda will continue to run all the stores involved in the transaction. Each site will be leased back under a 25-year agreement, with an option to extend for a further 10 years. The retailer has confirmed that no operational changes or job losses will result from the sale.
Why the deal?
Asda has positioned the transaction as part of a selective property strategy focused on maintaining a strong freehold base while unlocking value from specific assets. The company said the structure allows it to release capital while retaining full operational control of its sites.
The deal comes as the supermarket reported net debt of around £3.8 billion at the end of 2024, making the capital injection timely as it continues to navigate rising costs and fierce competition in the grocery market.
Implications for the retailer and wider sector
For Asda, the sale-and-leaseback model provides a substantial cash boost but also commits the business to long-term rental obligations—balancing immediate liquidity against future fixed costs.
Across the retail sector, the move reflects a wider trend of supermarkets leveraging property assets to free up investment capital. It also highlights the financial pressures facing major grocers as they adapt to changing consumer behaviour, tightening margins and the ongoing price race among rivals.
What to watch
How Asda deploys the newly raised funds—whether towards debt reduction, store modernisation, digital upgrades or pricing strategies.
The long-term impact of increased lease liabilities on operating margins.
Competitor responses and whether similar property-driven strategies emerge elsewhere.
The broader effectiveness of Asda’s turnaround efforts under chair Allan Leighton.
Asda’s decision underscores the critical role property strategy now plays in shaping competitiveness across the UK supermarket landscape. The coming months will reveal whether this bold financial move provides the foundation Asda needs to accelerate its wider transformation plans.