UK supermarket Asda has completed £568m ($742m) of sale-and-leaseback transactions across 24 stores and a distribution depot, in a move seen as strengthening the capital structure under majority owner TDR Capital, according to a report by Reuters.
The disposals – to DTZ Investors, Blue Owl Capital, and a Blue Owl–Supermarket Income REIT joint venture – come with 25-year leases and 10-year extension options, ensuring uninterrupted operations while freeing up liquidity.
TDR Capital, which acquired control of Asda in 2021, is using the transaction to both reduce net leverage and fund ongoing investment as trading performance remains under pressure. Asda ended last year with £3.8bn of net debt and has been ceding market share, with sales down 3.9% in the 12 weeks to 2 November.
The transaction underscores private equity’s increasing use of real-estate monetisation strategies in challenged consumer and retail portfolio companies, providing immediate cash while retaining operational control of core assets.
Blue Owl – a major player in sale-and-leaseback capital solutions – acquired 10 stores outright and partnered with Supermarket Income REIT for another 10, while DTZ bought four sites. Asda will publish third-quarter results next week.
Walmart retains a 10% minority stake in Asda.
