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The Issa brothers could reportedly offload a further “chunk” of Asda’s property portfolio to an Australian finance house in a deal estimated to be around £500m.
According to React News, Macquarie Asset Management is close to acquiring ground rent leases linked with around 50 Asda stores in the UK.
A provision in the deal would reportedly allow Asda to reassume ownership for a small amount at the end of a 50-year term, allowing it to pay lower rent whilst raising more equity.
It comes as the billionaire Asda owners are reportedly targeting sale-and-leaseback transactions for the supermarket’s estate in a bid to reduce Asda’s debts amid rising interest rates.
Earlier this year, it was reported the brothers were on the brink of selling a part of Asda’s property portfolio to a US investor in a deal worth £650m.
According to The Times, following a “competitive” bidding process, the New York-based investor Realty Income Corporation was close to buying around 25 Asda stores on leases of up to 20 years.
Backed by TDR Capital, the Issa brothers first acquired the supermarket chain in a £6.8bn deal in 2020.
Asda has been contacted for further comment.
