Asda eyes sale of car parking space to finance debt

Asda has reportedly launched a process to sell off almost 10 acres of car parking space as a way to reduce its debt, according to The Telegraph. 

Newsteer, which is advising Asda on the sales, has informed potential developers that Asda has identified surplus space at its stores in Slough, Reading, Burgh Heath near Epsom, Tilbury in Essex, and Cardiff.

According to Asda’s advisor, the developers could bid on 125-year leases for all five sites, or they could purchase individual locations. These locations can be transformed into new shops or homes.

It is understood from property sources that a potential deal could raise around £5m for the supermarket.

An Asda spokesman told The Telegraph: “It’s common practice for national retailers with large property portfolios like Asda, Tesco and Sainsbury’s to explore how best to make use of surplus land in their property estate.

“Prospective parties interested in these sites are advised to contact Newsteer.”

Last May, Asda sold the freehold of its 10-acre Park Royal superstore in Ealing to housing developer Barratt. 

Asda chairman Allan Leighton initiated a turnaround plan at the start of the year to revitalise the supermarket’s declining performance. The bid for additional funds comes as part of this effort.

Last week, Leighton confessed that the supermarket’s problems are “self-inflicted”. He stated that the Issa brothers had “ripped the heart out of the colleagues” by cutting costs across the business.

Retail Sector has approached Asda for comment.