Asda’s billionaire owners, Mohsin and Zuber Issa, are reportedly in discussions to divest a significant portion of the supermarket’s real estate assets amounting to approximately £500 million.
- Macquarie Asset Management is in advanced talks to acquire ground rent leases of 50 Asda stores, securing a 50-year tenure as part of the sale.
- The arrangement would allow Asda to lease back the properties at a relatively low rent, thereby freeing up substantial capital to address existing debts.
- Previously, the Issa brothers sold 25 Asda stores to Realty Income Corporation for £650 million, which was also executed as a sale and leaseback deal.
- Earlier transactions this year included the sale of the Issa brothers’ EG Group US properties and UK petrol stations to Asda, further reflecting their strategic asset management.
Mohsin and Zuber Issa, the billionaire owners of Asda, are reportedly negotiating a sale involving the supermarket’s real estate assets valued at nearly £500 million. According to reports, Macquarie Asset Management is close to finalising a deal to acquire ground rent leases related to 50 Asda stores in Britain. These leases will extend for 50 years, after which Asda will regain ownership for a nominal fee.
The strategic nature of this sale enables Asda to retain operational control by leasing the properties back for a low rent, effectively releasing capital that can be utilised to alleviate its mounting debt. This financial manoeuvre follows a similar transaction in July where the Issa brothers divested 25 stores to the US-based Realty Income Corporation, valued at £650 million.
The ongoing sale of Asda assets aligns with earlier actions taken this year by the Issa brothers. Their US property portfolio, part of the EG Group, was subjected to a significant $1.5 billion sale and leaseback transaction in March, offloading 415 stores along the US east coast. Additionally, Asda acquired EG Group’s UK and Ireland operations for £2.27 billion, encompassing 350 petrol stations and over 1,000 food-to-go locations.
These strategic asset sales illustrate a broader financial strategy aimed at restructuring and optimising the efficiency of Asda’s business operations amidst significant debt burdens.
The series of property sales by the Issa brothers reflect a calculated effort to manage Asda’s financial obligations while ensuring operational continuity.
