Grocery store Sainsbury’s has confirmed talks with a London-listed actual property investor to promote and leaseback 18 shops in a deal value round £500 million.
The proposed settlement would see Sainsbury’s promote the shops, that are positioned throughout the south of England, to actual property funding belief LXi REIT after which lease them again.
LXi is in discussions with traders over a doable share sale to boost a number of the funding for the deal.
Sainsbury’s additionally mentioned it had individually reached settlement on the worth it can pay to completely purchase out 21 shops from the Highbury and Dragon funding autos.
The grocery store mentioned the money from the proposed sale and leaseback cope with LXi REIT could be used to part-fund the Highbury and Dragon deal.
Sainsbury’s has held a 49% stake within the Highbury and Dragon websites since they have been arrange in 2000.
The retailer added that each offers “would lead to a broadly unchanged proportion of leasehold and freehold Sainsbury’s supermarkets, with possession and lease buildings higher reflecting present market circumstances and our priorities”.
The strikes additionally come as retailers look to bolster their stability sheets, specifically as they battle to maintain a lid on value hikes within the face of hovering inflation whereas defending their revenue margins.
The sale and leaseback cope with LXi follows some months after it first emerged that Sainsbury’s was seeking to promote the websites and plenty of different suitors are understood to have been .