MORISSONS STRIKES PROPERTY DEAL -The supermarket striked £370m deal to shrink debt pile
Morrisons, the supermarket chain, has struck a £370m deal with Song Capital, a real estate investor to unlock value from its vast property portfolio as its owners seek to further shrink the company’s debt pile.
Under the deal, which could be announced alongside Morrisons’ quarterly results on Thursday, Song Capital will pay £370m for the right to receive an income stream from 75 of the chain’s supermarkets for the next 45 years.
Morrisons will retain ownership of the stores’ freehold.
The deal comes more than three years after the Bradford-based retailer was taken private by Clayton Dubilier & Rice (CD&R) in a transaction valued at close to £10bn including debt.
The deal with Song Capital comes after the expiry of that undertaking but in any case does not involve a change of ownership of the properties involved, a source said.
