Morrisons signs £370m property deal in bid to shrink debt
Song Capital will pay £370m for the right to receive an income stream from 75 of the group's supermarkets for the next 45 years
Morrisons has reportedly signed a £370m deal with the aim of using its property portfolio to shrink its debt pile.According to Sky News, the chain has agreed the ground rent transaction with real estate investor Song Capital, which will pay £370m for the right to receive an income stream from 75 of the group’s supermarkets for the next 45 years.
Morrisons will reportedly keep ownership of the stores’ freehold following the deal.
The deal comes more than three years after the Bradford-based retailer was taken private by CD&R in a deal valued at around £10bn including debt. At the time, CD&R agreed to not dispose of store freeholds for a limited period.
However, a source told Sky this latest deal with Song Capital comes after this agreement expired. The move will not involve a change of ownership of the properties involved.
The agreement with Song Capital is the largest store-based transaction involving Morrisons since CD&R bought the group in 2021.
Morrisons and Song Capital have been contacted for comment.
