Asda puts car parks up for sale to pay down debts

Asda is selling off some of its supermarket car parks as it looks to pay down its mounting debt pile.

The grocery chain is understood to have launched a process to offload almost 10 acres of car parking space and nearby fields at five of its stores, The Telegraph reported.

Newsteer, which has been advising Asda on the sales, has informed potential developers that Asda has identified “surplus space” at its stores in Slough, Reading, Burgh Heath near Epsom, Tilbury in Essex and Cardiff.

The developers could bid to take all five sites on 125-year leases or purchase individual locations, which can be turned into new homes or shops, Newsteer said.

Property sources said a potential deal could raise around £5m for the supermarket.

A spokesman for Asda told the publication: “It’s common practice for national retailers with large property portfolios like Asda, Tesco and Sainsbury’s to explore how best to make use of surplus land in their property estate.

“Prospective parties interested in these sites are advised to contact Newsteer.”

It is not the first time that Asda has sold off some of its property portfolio, with the business selling the freehold of its 10-acre Park Royal superstore in Ealing to housing developer Barratt last May.

The bid for extra cash comes as Asda chair Allan Leighton kicked off his turnaround plan at the start of the year to help revive the supermarket’s flagging fortunes.

Leighton admitted last week that the supermarket’s problems are “self-inflicted” and claimed the Issa brothers had “ripped the heart out of the colleagues” when they cut costs across the business.

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