Sainsbury’s sale of 18 stores to LXi REIT will not proceed
Sainsbury’s has announced that the potential sale of 18 supermarkets to LXi REIT will not be going ahead.
The retailer said last week that it was in discussions with the commercial property company on the sale of the stores on a sale and leaseback basis. The funds raised would have been used to part-fund the purchase of 21 freehold Sainsbury’s supermarkets from the Highbury and Dragon portfolios.
Due to current stock market volatility, LXi REIT has now decided not to proceed with a share issue that would have part-funded the transaction.
However, Sainsbury’s will still complete the purchase of the 21 stores and has given a timeline of the first half of the financial year to March 2024.
The retailer said: “Given the strength of the Sainsbury’s balance sheet and property portfolio, we have a wide variety of alternative options to finance this transaction.”
