Asda Eyes £400M Windfall in Supermarket Sale-and-Leaseback Deal

Asda is reportedly in advanced discussions to offload and lease back around 20 of its supermarkets in a bid to raise £400 million to support its ongoing turnaround plans.

According to Sky News, the Leeds-based supermarket chain is nearing a deal with US investment firm Blue Owl Capital, with an agreement possibly due within weeks.

The move forms part of Asda’s wider strategy to boost investment in pricing, product availability, and cost efficiencies under the leadership of chair Allan Leighton.

Should the deal go ahead, Asda would continue to operate the stores involved, while releasing capital tied up in its property assets. The retailer adopted a similar approach in 2023 when it raised £650 million through a sale-and-leaseback arrangement with US-based Realty Income.

While Asda has not confirmed the current talks, a spokesperson told Sky News: “Sale-and-leaseback transactions have been a feature of the retail industry for many years.

“While maintaining a strong freehold base remains central to Asda’s property strategy, we will consider suitable opportunities to unlock value from our property portfolio as part of our material programme of investment into the business.”