In a significant move, the Issa brothers, owners of the UK supermarket giant Asda, are on the brink of finalizing a deal with an Australian finance institution. This transaction, centred around Asda’s property assets, is estimated to be worth a staggering £500 million.

Previously in 2020, with the backing of TDR Capital, a renowned private equity firm, the Issa brothers made headlines by acquiring Asda from the US-based conglomerate, Walmart, in a deal driven by £6.8 billion in debt. Now, in a strategic attempt to alleviate this debt, they are turning to sale-and-leaseback transactions for Asda’s vast property holdings.

Macquarie Asset Management, a prominent Australian financial entity, is reportedly in the final stages of negotiations to secure ground rent leases for around 50 Asda outlets across the UK. These leases are set to span 50 years, with a unique provision allowing Asda the option to reclaim ownership for a nominal sum at the lease’s conclusion.

This deal not only underscores the value of Asda’s property assets but also highlights the strategic moves businesses are making in the evolving retail landscape.