Supermarket giant Asda has announced a major £568 million property deal, selling 24 of its stores and a key distribution depot in a strategic move to bolster its financial position.
The Details of the Asda Property Deal
The transaction, confirmed on 20th November 2025, involves two separate 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. A further four stores located in Birmingham, Greater London, Leeds, and Coventry will be sold to London-based DTZ Investors.
This significant financial injection is a central part of Asda's strategy to strengthen its balance sheet. The supermarket's most recent accounts revealed it ended 2024 with £3.8 billion of net debt. The £568 million raised will be used to help pay down this debt and free up capital for its ongoing business turnaround, led by chairman Allan Leighton.
What This Means for Shoppers and Staff
In a crucial reassurance for both employees and customers, no stores are set to close as a result of this sale. Asda has confirmed that all staff will remain in their posts, and the day-to-day operation of the affected supermarkets will see no changes.
This is because the deal is structured as a sale-and-leaseback arrangement. Asda will immediately lease back every single property from the new owners on a long-term basis. The initial lease is for 25 years, with an option to extend for a further 10 years, ensuring full operational control remains with the supermarket.
A Long-Term Property Strategy
Asda has described this move as part of its long-term property strategy. The approach balances the benefits of owning stores outright with the selective sale of assets to release capital. This allows the company to raise substantial funds while keeping full operational control of its store network.
The supermarket is expected to provide a more detailed update on its trading performance and financial health to investors next week.
