Sainsbury Seeking £200 Million Sale Leaseback of Four Distribution Centers in UK

Property Week - September 21, 2007

Sainsbury’s is considering a £200m sale and leaseback of its distribution sheds. The retailer has approached six parties to see if they are interested in four regional distribution centres in the Midlands and the north of England. However, the credit crunch and the low 5% yield could put off bidders, although the 20-year leases could be attractive.

A source close to the deal said: "The people who could be interested in this are finding it difficult to raise money. But the sites are good, and long leases to Sainsbury’s make it more tempting." The parties are a mix of equity-rich and debt-driven buyers. There is no deadline. Sainsbury’s is keen to offload the sites so it can focus on running its supply chain.

Cushman & Wakefield is advising Sainsbury’s Sphere: Related Content