UK supermarket Morrisons in talks for $803 million stores deal, Sky News reports
O•Company response
Morrisons, Realty Income and CBRE did not immediately respond to Reuters' request for a comment.
Morrisons in talks over real estate deal
British supermarket group Morrisons is in talks with a number of parties, including U.S.-based Realty Income O.N, for a £600 million ($802.98 million) real estate deal, Sky News reported on Monday, citing industry sources.
The deal is unlikely to be structured as a conventional sale-and-leaseback deal, but can instead involve financing tied to a portfolio of the retailer's stores, Sky reported.
Background on earlier financing plans and market pressure
The grocery chain previously engaged real estate advisor CBRE CBRE.N to evaluate options to raise up to £1 billion against part of its freehold store portfolio, Sky had reported in February.
The sixth-largest UK grocer has been focused on streamlining its operations as it grapples with an increasingly competitive domestic retail sector and lower consumer spending amid rising energy prices from the U.S.-Iran war.
The chain, owned by U.S. private equity firm Clayton, Dubilier & Rice, lags peers Tesco TSCO.L and Sainsbury's SBRY.L as well as discounter Lidl, which recently overtook it to become Britain's fifth-biggest grocer, according to industry data.
