Supermarkets have been selling stores and warehouses in a bid to raise cash fast to help pay down significant debt piles.
Asda and Morrisons have been leading the way among the UK’s supermarkets in selling a portion of sites and then leasing them back in order to continue using the properties.
According to data from research group Colliers, these transactions made up almost half of property deals last year, in comparison to just 1% in 2022.
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These deals allow the retailers to get access to cash locked up in real estate to pay down their debt, as Morrisons has a debt pile of £8.6bn and Asda’s debt is currently at £4.2bn.
Morrisons completed sale and leaseback deals of around £450m in the financial year to 29 October 2023, This Is Money reported.
While Asda also sold off 25 stores in a deal worth £650m to New York-based investor Realty Income Corporation last year.
