John Lewis has called bids this week on the sale-and-leaseback of 12 of its Waitrose food supermarket stores as it looks to recycle capital into its turnaround plan for the business, CoStar News understands.
CBRE has been appointed to sell the portfolio seeking in excess of £138.54 million or a 5.85% net initial yield. Market sources said the portfolio is being sold on an individual asset basis or on a portfolio basis and that bids were being called this week.
The portfolio comprises 12 supermarkets being sold freehold with a rare unexpired 20-year inflation-linked lease term with no break options. There is an average store size of around 35,000 square feet and they are located in Greater London and the South East, South West and East of England.
The stores are at: Chipping Sudbury, East Cowes, Exeter, Harpenden, Hythe, Longfield, Norwich, Richmond, Romsey, Saxmundham, Welwyn Garden City and Wokingham.
The retail giant wants to raise capital to invest in stores, improve prices and invest in online operations.
The John Lewis Partnership owns 35 department stores and 329 Waitroses. It was reported earlier this year that it is considering selling a minority stake in the group to raise at least £1 billion for investment.
John Lewis’ losses narrowed in the first half of the latest financial year to £56.2 million, a 43% improvement compared to the first half of 2022.
As with other major department store chains John Lewis has been reducing the number of stores it occupies across the UK - stores that often anchor high streets and malls.
It has also been exploring other areas of real estate investment and management. Recently it launched a management services business to manage apartments across three build-to-rent developments it is pursuing with Abrdn.
Last month it appointed Martin Gafsen as director of property to oversee the strategy and management of the Partnership’s property portfolio, which includes the John Lewis and Waitrose supermarkets estates. Its lead, chair Dame Sharon White, recently announced she would step down.
CBRE declined to comment.