Morrisons to clear £331m of debt by cashing in on property portfolio

Morrisons will raise £331m after agreeing a 45-year ground rent deal with real estate investor Song Capital.

The ownership of 76 supermarkets will be transferred from Morrisons and leased back, with Song Capital receiving an income from the properties until 2069.

The Bradford-based retailer has been struggling with a considerable debt mountain that peaked at £6.2bn and has gradually come down to around £4bn since the arrival of former Carrefour boss Rami Baitieh last year.

Morrisons was bought out by Clayton Dubilier & Rice in October 2021 for close to £10bn with the private equity firm pledging not to dispose of store freeholds for a period of time.

The deal which mirrors one Asda is expected to also shortly complete with an Australian finance house.