Bradford-based supermarket giant Morrisons said it will raise about £331 million with the sale and lease back of 76 of its supermarkets. 

Under the ground rent financing transaction, set to be completed on or around 2 October, 76 of Morrisons’ properties will be transferred outside of the group and then leased back to it. The entities acquiring and leasing back the properties will fund the acquisition using third-party financing.

The move is the latest under new CEO Rami Baitiéh to cut the company’s debts. The use of proceeds from the transaction is under consideration, it said. 

Separately, Morrisons said third-quarter total sales, excluding fuel, rose 2.1% to £3.9 billion.

Baitiéh said: “Like-for-like sales remained positive, the switching data improved year-on-year and although the market was noticeably softer in Q3, our relative position improved and our market share stabilised.”

“As inflation reduces we are seeing customers increasingly valuing Britishness, provenance, quality and the love of great value fresh food, all of which is in Morrisons heartland.  Our price competitiveness improved further in the quarter as our Aldi and Lidl price match, More Card offers and everyday low prices combined to give customers increasing confidence in Morrisons great value.”