Asda nears £400m sale-leaseback deal with Blue Owl

Asda is in advanced talks with American asset management firm Blue Owl Capital for a £400 million sale-and-leaseback deal involving around 20 of its supermarket stores. This transaction is part of Asda's strategy to unlock value from its property portfolio to support its ongoing turnaround plans, which include investments in pricing, product availability, and cost efficiencies under chair Allan Leighton. A similar deal was completed in 2023 when Asda raised £650 million through a sale-and-leaseback agreement with Realty Income. While maintaining a strong freehold base remains central to Asda's property strategy, the retailer is open to suitable opportunities to fund its material investment programs. The deal, which could be finalized within weeks, is being managed by real estate investment bank Eastdil. Asda recently announced plans to invest nearly £12 million in store upgrades, particularly across northern England and Yorkshire, where the company was founded 60 years ago.