Dow Jones Newswires: Sainsbury’s talks with LXI REIT over sale of 18 stores collapse due to market volatility concerns
J Sainsbury PLC said Monday that it is no longer in discussions with LXI REIT PLC over the sale and leaseback of a portfolio of 18 supermarket stores, due to LXI’s market volatility concerns.
The British grocer SBRY,
The two companies had said on Wednesday that they were in discussions for LXI to buy and lease back 18 assets for an expected 500 million pounds ($542.5 million).
Sainsbury’s said then that if the transaction was carried out, proceeds would have been used to part-fund the purchase of 21 freehold Sainsbury’s supermarkets from other property portfolios.
The company now says the purchase will complete in the first half of its fiscal year ending March 2024, and given its balance-sheet strength and property portfolio, it has many alternative financing options for the purchase.
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