Struggling supermarket Morrisons is close to offloading a 13-asset portfolio as it seeks to sell off non-core property and generate cash from its real estate.
NewRiver Retail is under offer to buy four development sites and nine freehold investments, all adjacent to Morrisons stores, for close to £70m.
The price reflects a yield of between 7.5% and 8%.
Most of the assets are located in the supermarket’s heartland in the North, and the freehold investments comprise retail warehousing.
NewRiver Retail fought off competition from Helical Bar, Development Securities and Sovereign Land. Last year, NewRiver spent £45.2m on expanding its nine-asset retail warehouse portfolio.
Investing in sites with development potential and retail warehousing formed part of Morrisons’ original expansion strategy.
It had earmarked these 13 investments for future development, at which the supermarket would become the anchor of a wider retail scheme.
However, following falling sales and shareholder pressure, the chain has changed tack. New chief executive David Potts is undertaking a major review of the firm, including asset sales.
In March, it made a £1.3bn write-down on its property portfolio and closed 23 stores.
At the same time, property director Gordon Mowat left the business after only six months in the job along with four other board members.
Over the past year the company has raised more than £400m from the sale and leaseback of property across its £8.5bn portfolio.
Cushman & Wakefield is advising Morrisons on the sale.
