Asda is considering offloading 20 of its stores as part of a £400m deal with real estate company Blue Owl Capital as it looks to fund its turnaround plans.

The retailer will make a sale and lease back property agreement as it seeks to invest in its supermarket growth. Reports of the proposed transaction previously emerged in May.

The deal is expected to close within weeks as Asda seeks capital for its turnaround plans. Eastdil, a real estate company, will be overseeing the process.

An Asda spokesman said: “Sale-and-leasebacks have been a feature of the retail industry for many years.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

“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.”

Last year in June, private equity firm TDR Capital LLP agreed to acquire Zuber Issa’s stake in Asda and now owns 67.5% of the shares.

Since then, Asda has been pushing towards a turnaround plan under Allan Leighton’s lead.

The news comes after Asda had a similar sale and leaseback property deal in 2023 with a US investor for £650 million.