British Land has agreed to acquire a 50 percent stake in 21 Asda superstores in a £200 million deal, marking its return to grocery retail nearly seven years after selling interests in Sainsbury’s stores. The transaction forms a joint venture with Asda, Britain’s third-largest supermarket chain, and is the first major move under new British Land chief executive Jo McNamara, who assumed the role last month. Discussions between British Land and Asda began prior to McNamara’s appointment.

The 21 Asda superstores involved in the deal are located across the UK, stretching from Cornwall to Scotland. Under the agreement, Asda will retain ownership of the stores but will pay rent on them, with British Land receiving half of the rental income. The joint venture also includes a management fee payable to British Land. Sources familiar with the matter described the arrangement as “materially earnings enhancing” for British Land.

The deal is timely for Asda, which aims to bolster its financial position amid rising debt. The retailer’s net borrowings stood at approximately £3.1 billion at the end of 2025. Proceeds from the transaction are expected to be used partly to reduce this debt burden. After its £6.8 billion acquisition by private equity firm TDR Capital and the Issa brothers in 2021, Asda has faced challenges, including a decline in market share and increased debt pressures, although its sales showed improvement during the summer months. The stores included in the joint venture are among Asda’s top-performing locations.

British Land plans to fund the investment by reallocating capital from certain mature retail properties, such as Nugent Shopping Park in Orpington, southeast London. Supermarkets have gained appeal among investors in recent years due to their relative stability compared to other retail segments. Large supermarkets tend to maintain store operations to preserve market share and have been adapting their physical stores to support growing online shopping demand.

This strategic partnership signals British Land’s renewed focus on grocery retail assets, positioning the company to benefit from the sector’s resilience while providing Asda with an opportunity to manage its debt and sharpen its financial profile.