Morrisons’s owner, Clayton Dubilier & Rice (CD&R) has given permission to sell off a chunk of the supermarket’s property portfolio months after completing its £7 billion takeover of the supermarket chain.
According to Sky News, CD&R has appointed advisors to oversee the disposal of £500 million worth of Morrisons’ manufacturing and distribution centres in the UK.
City sources said that the plans had been under discussion for some time, with a formal process expected to begin imminently.
The real estate auction will be among the most significant moves to date sanctioned by CD&R.
As part of the firms’ efforts to secure the backing of pension trustees and other stakeholders, CD&R pledged not to undertake substantial sale-and-leasebacks of the supermarket’s store portfolio.
The retailer said to Sky News: “We are taking steps to mitigate the impact of these developments on our EBITDA (core earnings) for the remainder of the year.
“Unless these conditions improve, the impact of these developments could have a material adverse effect on our sales and EBITDA for the year.”