Supermarket group Morrisons has agreed a £331 million property deal as part of efforts to slash its significant debt pile.
The private equity-owned retailer said on Thursday that it expects to complete the “ground rent financing” deal around October 2.
It said Morrisons will sell 76 properties to an undisclosed business, before these are then leased back to the retail firm.
Sky News reported that real estate investor Song Capital is the buyer.
The company will announce a third quarter trading update later on Thursday.
Morrisons, which was bought by US private equity firm Clayton, Dubilier & Rice in 2022 for £7 billion, is the fifth-largest supermarket chain in the UK.
The deal comes amid efforts by Morrisons to reduce its heavy debt pile, although the company said the way it will use the proceeds of the deal is “under consideration”.
It most recently reported a debt burden of about £4 billion, although this is down significantly from a peak of £6.2 billion.
Debts were reduced by the proceeds of the £2.5 billion sale of its petrol station business to Motor Fuel Group, the forecourt giant also owned by CD&R.
It has also been pushing forward with a major cost-cutting programme under new boss Rami Baitieh.
This article was written by Henry Saker-Clark from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.