In a significant move to bolster its financial position, the UK supermarket giant Asda has agreed to a £568 million deal involving the sale of 24 of its stores and a major distribution depot.
What is the Deal About?
The transaction, announced in November 2025, is a strategic effort by the retailer to strengthen its balance sheet and pay down debt. The supermarket, chaired by Allan Leighton, is undertaking this sale as part of its ongoing turnaround plan. Crucially, this is a sale-and-leaseback agreement, meaning all locations will continue to operate as normal Asda supermarkets.
Who Are the Buyers and Which Stores Are Affected?
The deal involves two main buyers. The majority of the portfolio, comprising 20 stores and the large Lutterworth distribution depot, is being acquired by a partnership involving US investment firm Blue Owl Capital and Supermarket Income REIT. The specific locations of these 20 stores have not been publicly disclosed.
An additional four stores in key urban areas—Birmingham, Greater London, Leeds, and Coventry—will be sold to London-based property firm DTZ Investors. Asda has confirmed that this move is a calculated part of its long-term property strategy, allowing it to release capital while retaining full operational control over the sites.
What Does This Mean for Shoppers and Staff?
For both customers and employees, Asda insists it will be business as usual. No stores are set to close as a result of this financial manoeuvre. All staff will remain in their positions, and the company has secured long-term leases for every property involved.
Asda will lease back each store on a 25-year lease, with an option to extend for a further ten years. This arrangement ensures that shoppers will not notice any operational changes in their local supermarkets. The primary goal is to free up capital to reinvest in the business and reduce its net debt, which stood at £3.8 billion at the end of 2024.
