Morrisons strikes £200m sale-and-leaseback deal with ICG
Morrisons has agreed a £220m sale-and-leaseback deal for seven distribution centres, as it raises funds to expand its Morrisons Daily convenience store chain.
The supermarket group has agreed to sell seven of its distribution warehouses to ICG, a FTSE 100 asset management firm. Morrisons has leased back the warehouses on an index linked and triple-net basis for a term of up to 25 years.
Chad Brown, managing director at ICG Sale and Leaseback, said: “The Morrisons portfolio is a prime example of the mission-critical real estate we are seeking to acquire. We look forward to working with Morrisons as they continue to grow their footprint.”
Morrisons has agreed a £220m sale-and-leaseback deal for seven distribution centres, as it raises funds to expand its Morrisons Daily convenience store chain.
The supermarket group has agreed to sell seven of its distribution warehouses to ICG, a FTSE 100 asset management firm. Morrisons has leased back the warehouses on an index linked and triple-net basis for a term of up to 25 years.
Chad Brown, managing director at ICG Sale and Leaseback, said: “The Morrisons portfolio is a prime example of the mission-critical real estate we are seeking to acquire. We look forward to working with Morrisons as they continue to grow their footprint.”
Part of the proceeds from the sale-and-leaseback deal will be used to accelerate the conversion of almost 1,000 McColl’s shops into Morrisons Dailys.
Jo Goff, chief financial officer at Morrisons, said: “We continue to invest in our strategy of becoming a broader, stronger, more popular and more accessible business and this transaction will help to finance further investment. The acquisition of McColl’s earlier this year gave us a leading position in the UK convenience market and next year we are on plan to open a further five supermarkets across the UK, and to invest further in our manufacturing operations.”
Chris Nichols, managing director and portfolio manager at ICG Sale and Leaseback, added: “This transaction is an excellent example of how sale-and-leaseback investing can serve as an alternate form of financing. We continue to seek similar pan-European mission critical opportunities as we actively deploy capital across Western Europe.”
ICG was advised on the transaction by CBRE, Ashurst & Hogan Lovells. Morrisons was advised by Knight Frank and Eversheds.
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