Sainsbury’s has said it will still buy 21 store freeholds, despite the collapse of its LXi sale-and-leaseback deal.
The supermarket chain said it was no longer in discussions to sell 18 freeholds to LXi REIT in a £500m deal. This morning LXi said “current stock market volatility” had made shareholders wary of proceeding with the share issue that would have part-funded the transaction.
Sainsbury’s said: “Hence we are no longer in discussions to sell these stores to LXi REIT.”
On September 21, the supermarket said cash received from the LXi deal would have been used to part-fund the purchase of 21 freehold Sainsbury’s supermarkets from the Highbury and Dragon portfolios. This morning it confirmed this would still go ahead.
“The purchase of these 21 stores will complete in the first half of the financial year to March 2024,” it said. “Given the strength of the Sainsbury’s balance sheet and property portfolio, we have a wide variety of alternative options to finance this transaction.”
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