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The Issa brothers are reportedly planning to explore a sale of Asda’s £8.6bn property estate in a bid to tackle its rising debt costs.
According to The Telegraph, property experts have been drafted in to “assess the prospects for the supermarket’s estate”.
However, it is believed the Asda owners, who are backed by TDR Capital, could retain a “sizeable underpin” of freehold properties even if some sites are sold and leased back from investors.
The Issa brothers acquired Asda in a £6.8bn debt-fuelled deal from Walmart, in which they injected only £800m in equity.
However, rising interest rates and the cost-of-living crisis have reportedly increased pressure on the owners to pay down the supermarket’s debt.
Last January, reports emerged that the Issa brothers were reportedly considering merging Asda with the EG Group ahead of EG’s £7bn refinancing in 2025, according to the Times.
Both companies are jointly owned by the Blackburn-based brothers and private-equity company TDR Capital. The owners said they hope that by merging the businesses they will be able to refinance EG Group’s debt on more favourable terms.
