Asda is selling off some of its store car parks, in a deal expected to give the struggling supermarket a £5m cash injection.

The supermarket chain is understood to have begun the process to sell almost 10 acres of car parking space and nearby fields at five of its superstores, The Telegraph reported.

The sale, on which Asda is being advised by Newsteer, will seek to capitalise on the potential of “surplus space”, identified at stores in Slough, Reading, Burgh Heath near Epsom, Tilbury in Essex and Cardiff.

Buyers will have the option to acquire all five locations on 125-year leases, or buy individual sites, which can be turned into new homes or shops, subject to planning approvals.

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However, It is not the first property deal Asda has struck. Last May, Asda agreed to sell the 10-acre Park Royal land of its Ealing, London superstore to the UK’s biggest housebuilder, Barratt.

New chairman Allan Leighton has made several other cost cutting moves in recent weeks, since he returned in November to steward the ailing supermarket’s turnaround plan. Last week, it was revealed the supermarket had scrapped bonuses for thousands of staff, citing dampened sales over the golden quarter.

The new chairman appointment comes as Asda’s debt pile was valued at £3.8bn as of end of the third quarter of 2024, £100m down from previous quarter. Last year, Asda paid £441m in finance costs, before borrowing another £155m in December to help pay off some of its more pressing debts.

A spokesman for Asda said: “It’s common practice for national retailers with large property portfolios like Asda, Tesco and Sainsbury’s to explore how best to make use of surplus land in their property estate. Prospective parties interested in these sites are advised to contact Newsteer.”