Macquarie Acquiring Ground Rent Leases for 50 UK Asda Stores

  • Macquarie Asset Management close to acquiring ground rent leases linked with around 50 Asda stores in the UK
  • Deal estimated at £500m
  • Provision for Asda to reassume ownership after a 50-year term
  • Allows Asda to pay lower rent and raise equity
  • Sale-and-leaseback transactions aimed at reducing debts amid rising interest rates

The Issa brothers, owners of Asda, are reportedly close to a £500m deal with Macquarie Asset Management to offload a portion of the supermarket’s property portfolio. The deal would allow Asda to regain ownership after 50 years and pay lower rent while raising equity. This follows their previous attempt to sell part of the chain’s estate to a US investor for £650m earlier this year.

Factuality Level: 7
Factuality Justification: The article provides relevant information about potential property sales and deals involving Asda’s property portfolio, citing sources and discussing the reasons behind these transactions (reducing debts due to rising interest rates). However, it lacks some details on the specifics of the deals and could provide more context on the Issa brothers’ acquisition in 2020.
Noise Level: 3
Noise Justification: The article provides relevant information about potential property sales and deals involving Asda’s estate, but lacks in-depth analysis or exploration of the consequences on those who bear the risks. It also does not offer actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Asda’s property portfolio and potential investors (Macquarie Asset Management, Realty Income Corporation)
Financial Rating Justification: This article discusses the sale of a significant portion of Asda’s property portfolio, which is related to financial transactions and impacts potential investors in the real estate market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

Reported publicly: www.retailsector.co.uk