MORRISONS has today completed a sale and leaseback deal worth £220 million.

The transaction involves seven logistics properties around the UK.

As part of the transaction, which was completed with asset management firm Intermediate Capital Group, the Bradford-based supermarket has undertaken to lease the properties for up to 25 years from completion.

Jo Goff, Morrisons chief financial officer, said: "We continue to invest in our strategy of becoming a broader, stronger, more popular and more accessible business and this transaction will help to finance further investment.

“The acquisition of McColl’s earlier this year gave us a leading position in the UK convenience market and next year we plan to open a further five supermarkets across the UK, and to invest further in our manufacturing operations.”

The supermarket giant bought McColl's earlier this year, after the 1,100-convenience store chain fell into administration.

A Competition and Markets Authority (CMA) investigation was conducted before the £190 million deal could be completed, which weighed up whether the buyout would cause competition concerns in local areas.

The investigation found there would only be issues in a small number of areas and the CMA said that the overall deal “would not harm the vast majority of shoppers or other businesses", paving the way for the deal to be completed.

 

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