Morrisons seeking £1bn property sell-off - commercial mortgages

27 March 2007

UK retail group Morrisons is hoping to raise £1 billion from the sale of a number of its properties.

The group is reportedly in talks with property company Topland over a potential sale, which would see 26 Morrisons properties sold-off at one time. According to the Express these include a number of non-core sites and some that are currently being let to other businesses.

Commentators speculate that Morrisons is looking for the sale in order to protect itself from possible bids tabled by private equity buyers who would lease the properties back at a profit.

A £1 billion sale to Topland would open the properties to business tenants looking to rent premises or secure a base of operations through commercial mortgages.

Earlier this month bosses at Morrisons asserted that the company was prepared to exploit its property assets to fend off potential takeover bids.