Morrisons in £100m stores sale and leaseback deal
Three stores sold
The three stores concerned are located at Reading, High Wycombe and Darlington. According to press reports, Morrisons will lease back the stores from their new owners (Aberdeen Asset Management and the Universities Superannuation Scheme) at a cost of around £20 / sq ft over the next 25 years. Morrisons is also understood to be close to agreeing the sale and lease back of a fourth store near Newcastle with fund manager M&G.
Releasing cash to invest in core proposition
Morrisons announced its intention to raise £1bn through the sale and leaseback of property last March with a £400-£500m expected to be raised in 2014-15. Working towards this goal, Morrisons has already sold two regional distribution centres for £178m, with three stores sold at the end of last year and the four stores referenced above set to raise another £260m for Morrisons. Despite these deals Morrisons is committed to retaining at least 80% of its core estate as freehold. Though down on the over 90% freehold share it had before the process started, it still leaves Morrisons with one of the highest ratios in the sector.
Increasing focus on the customer experience
Separately Morrisons has announced that group manufacturing director Mark Harrison has been appointed to the new role of group supply chain and projects director. As well as continuing to have responsibility for the supply chain, he will lead major projects designed to improve the customer experience and help Morrisons operate more efficiently. Day-to-day responsibility for managing manufacturing will be taken on by Andrew Thornber who is promoted to the new role of manufacturing managing director and will report into group trading director Casper Meijer.
Source: igd.com
