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(Sharecast News) - Supermarket chain Morrisons is in talks to raise up to 1bn through a major property deal, it was reported on Monday.
The grocer, the UK's fifth-largest, has hired specialist property firm CBRE to evaluate options for raising finance secured against part of its freehold real estate, according to Sky News.
Citing unnamed sources, Sky noted that the process was at an early stage but it was unlikely to be a traditional sale-and-leaseback deal. Any agreement could raise up to 1bn, the report added, although both the size and structure has yet to be established.
Bradford-based Morrisons declined to comment on the report.
Morrisons has around 500 supermarkets in the UK and employs around 95,000 people. It has been owned by US private equity firm Clayton Dubilier & Rice since 2021, when it was taken private in a deal worth around 10bn including debt.
However, in recent years it has increasingly struggled discounters Aldi and Lidl, who are rapidly building market share in the UK. Chief executive Rami Baitieh, who was previously at French chain Carrefour, was brought in to reinvigorate the business when he in 2023.
Grocers own vast amounts of real estate, but traditionally monetise that through property deals such as sale-and-leasebacks. Morrisons currently owns the freeholds of roughly 80% of its store estates, one of the highest levels in the sector.
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