Supermarket Sainsbury’s has confirmed it has entered talks to sell and lease back 18 stores in a deal worth around £500 million. The proposed agreement would see Sainsbury’s sell the stores, which are located across the south of England, to London-listed real estate investment trust LXi REIT and then rent them back.
LXi is in discussions with investors over a possible share sale to raise some funding for the deal. Sainsbury’s also said it had separately reached agreement on the price it will pay to fully buy out 21 stores from the Highbury and Dragon investment vehicles.
The grocer said the cash from the proposed sale and leaseback deal with LXi REIT would be used to part-fund the Highbury and Dragon deal. Sainsbury’s has held a 49% stake in the Highbury and Dragon sites since they were set up in 2000.
