The private equity owners of Asda and Morrisons have raised about $8.3bn through property disposals, as they seek to reduce leverage following debt-heavy buyouts completed at the end of the low interest rate era, according to a report by the FT.

TDR Capital has raised around £3.3bn, equivalent to roughly $4.2bn, from sales of Asda supermarkets, warehouses, and petrol forecourts since acquiring the retailer in 2021 alongside the Issa brothers. Clayton Dubilier & Rice has raised about £3.2bn, or around $4.1bn, from Morrisons’ property portfolio since completing its £7bn acquisition in 2022.

Much of the capital has been generated through sale-and-leaseback transactions, leaving both retailers paying rent on assets they previously owned. TDR used proceeds from a £1.7bn sale-and-leaseback of 27 Asda warehouses with Blackstone to help finance its acquisition, and later raised a further £568m from supermarket sales.

Clayton Dubilier & Rice has also used property sales to address Morrisons’ debt burden. In 2024, the firm sold Morrisons’ 337 petrol forecourts to Motor Fuel Group, another portfolio company, in a £2.5bn deal that included Morrisons taking a roughly 20% stake in the buyer.

The transactions reflect how private equity-backed retailers are unlocking real estate value to strengthen balance sheets amid rising interest rates and intense competition in the UK grocery market.

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