LXi had last Wednesday said it was in talks with the grocer to buy 18 supermarkets for 500 million pounds ($531.50 million) in a sale and leaseback deal, but the purchase was conditional on the investor raising the necessary equity funding. Since then UK stocks have been gyrating on fears of an impending recession and concerns over a huge increase in borrowing due to Britain's new tax cuts and spending plans.
The deal will see Sainsbury’s sell the stores located across the south of England to real estate investment trust LXi REIT and then rent them back.
LONDON (Reuters) -British supermarket group Sainsbury's has exchanged contracts with LXi REIT on a deal to sell 18 stores in southern England for 500 million pounds ($562 million) to the property investor and then lease them back. LXi REIT said on Thursday completion of the acquisition was conditional on it raising the necessary equity funding, for which it is currently in talks with investors. Sainsbury's, Britain's second largest grocer after Tesco, has said if transaction goes ahead it will use the cash to part fund the purchase of 21 stores from the Highbury and Dragon investment vehicles.