Morrisons owner plans to sell £600m of property assets
// Morrisons private equity owner CD&R is marketing a portfolio of properties including warehouses, fisheries and food manufacturing facilities to raise £600m
// The private equity firm is believed to be looking to lease the facilities
Morrisons new private equity owner CD&R is looking to sell a selection of property assets, including warehouses, fisheries and food manufacturing facilities, with the aim of raising more than £600million.
CD&R would market the property, which it then aims to re-let, via BNP Paribas and Knight Frank, according to the Sunday Times.
The portfolio is expected to include approximately two dozen real estate assets across the nine distribution centers and 20 manufacturing sites.
CD&R, which had its CMA takeover of Morrisons approved last week, said last year it had no plans to sell a “material” number of its 497 supermarkets for at least a year. year.
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The sale of assets follows Morrisons’ warning in April that rising costs and falling consumer spending were expected to hurt profits.
The hit to Morrisons’ bottom line, alongside rising interest rates, is believed to have put pressure on CD&R to sell assets to reduce its debt exposure.
The private equity firm has invested around £3.4bn for its £7bn takeover of Morrisons, but the rest is funded by lenders.
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