Wal-Mart owned UK supermarket group Asda has appointed UBS to explore ‘strategic options, including a sale’ for its property development business Gazeley.
Wal-Mart owned UK supermarket group Asda has appointed UBS to explore ‘strategic options, including a sale’ for its property development business Gazeley.
Gazeley is a market leader in the development of distribution warehousing in the UK, mainland Europe and China and has recently moved into India and Mexico. The company was founded in 1987 and operates as a stand alone business. It also provides Wal-Mart and Asda with storage and distribution facilities worldwide.
‘This is not a core business for us,’ said Asda CEO Andy Bond in a statement. ‘We have previously had several unsolicited approaches for Gazeley and have now decided to review our strategic options, which might include a sale of the business.’
Gazeley’s leased warehouses across Europe have an investment value of GPB 325 million (EUR 426 mln), the company said. In the event of a sale, Asda would continue its long term relationship with the company, Bond said.
The Financial Times said the sale could fetch up to GPB 400 mln.
