UK supermarket Morrisons in talks for $803 million stores deal, Sky News reports
Morrisons' Real Estate Deal and Market Position
July 13 (Reuters) - British supermarket group Morrisons is in talks with a number of parties, including U.S.-based Realty Income, for a £600 million ($802.98 million) real estate deal, Sky News reported on Monday, citing industry sources.
Deal Structure and Financing Options
• The deal is unlikely to be structured as a conventional sale-and-leaseback deal, but can instead involve financing tied to a portfolio of the retailer's stores, Sky reported.
Previous Financial Strategies
• The grocery chain store previously engaged real estate advisor CBRE to evaluate options to raise up to £1 billion against part of its freehold store portfolio, Sky had reported in February.
Market Challenges and Competitive Landscape
Operational Streamlining Amid Economic Pressures
• The sixth-largest UK grocer has been focused on streamlining its operations as it grapples with an increasingly competitive domestic retail sector and lower consumer spending amid rising energy prices from the U.S.-Iran war.
Ownership and Market Ranking
Private Equity Ownership
• The chain, owned by U.S. private equity firm Clayton, Dubilier & Rice, lags peers Tesco and Sainsbury's as well as discounter Lidl, which recently overtook it to become Britain's fifth-biggest grocer, according to industry data.
Responses from Involved Parties
• Morrisons, Realty Income and CBRE did not immediately respond to Reuters' request for a comment.
Additional Information
($1 = 0.7472 pounds)
(Reporting by Yamini Kalia and Simone Lobo in Bengaluru; Editing by Joyjeet Das)
