Asda said Thursday it agreed to a major sale-and-leaseback deal covering 24 stores and its Lutterworth distribution depot, raising £568 million in fresh capital as the retailer marks one year under the majority ownership of TDR Capital.
Four stores – Small Heath, Colindale, Coventry Abbey Park and Killingbeck – have been sold to DTZ Investors and leased back, while Blue Owl Capital has acquired 20 stores plus the depot.
All 25 sites are now subject to 25-year leases, with the option to extend for a further decade at each renewal point. Asda said colleagues working at the affected locations would see “no changes” to operations.
“Asda’s property strategy is centred on maintaining a strong freehold base while also taking a considered and selective approach to unlocking value from our estate where appropriate. These transactions reflect that approach, enabling us to realise value from the sites while retaining full operational control,” an Asda spokesperson said.
The deal comes almost exactly a year after TDR Capital became Asda’s majority shareholder, increasing its stake to 67.5 per cent following the buyout of Zuber Issa in November 2024. At the time, TDR said its priority was accelerating Asda’s long-term growth strategy, with a particular focus on value and expanding into convenience retailing.
However, the transaction lands at a challenging moment for Asda’s core performance. The latest data from Worldpanel by Numerator shows the grocer’s market share at 11.6 per cent as of 2 November, but sales were down 3.9 per cent over the past three months. Asda has not recorded any period of sales growth since March 2024, underlining the sustained competitive pressures in the market.
The GMB trade union sharply criticised the move, describing the £568m sell-off as “yet more asset-stripping”. Nadine Houghton, GMB national officer, said the sale was driven by the need to service debt “heaped on the business” by Asda’s private-equity ownership.
“Debt is up, lease liabilities are up, interest payments are up – but market share and staff morale are rock bottom,” she said, adding that members continued to report rising stress levels and declining health and safety standards. “Asda was once one of the UK’s biggest retailers – where will it all end?”
The developments come as Asda continues to scale its presence in the convenience retail sector, including through its Asda Express format and conversion of former convenience sites acquired in recent years.