Supermarkets such as Asda and Morrisons are attempting to reduce debt by selling and leasing back their stores, analysis by Savills has shown.
A total of £400million worth of sale-and-leaseback deals have been put on the market since January or are under offer.
Savills, The Times reports, says the activity has been fuelled by supermarkets looking to release capital - with Asda and Morrisons among the biggest participants.
The activity comes as both Morrisons and Asda have sold off large parts of their property portfolios to reduce multibillion-pound liabilities inherited from their private equity owners.
Research by Savills found that, since 2021, sale-and-leaseback deals involving British supermarket stores, grocery sheds and warehouses amounted to a value of £4.8billion. For 2025 alone that figure was £1.53billion.
Sam Arrowsmith, Savills' director and head of out-of-town research, said: “We’re seeing sale‑and‑leasebacks evolve from a niche capital‑raising tool into a core part of grocery investment strategy. For retailers, they provide an efficient route to unlock capital while retaining operational control.
“For investors, the combination of long leases, index‑linked income and structurally constrained supply creates a defensive profile that is difficult to replicate elsewhere in the market. With development pipelines likely to remain muted and trading performance holding firm, we expect sale-and-leasebacks to continue playing a pivotal role in driving liquidity and pricing stability across the sector.”
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