Morrisons in talks for $803 million stores deal, Sky News reports

• The deal is valued at £600 million (approximately $803 million) and involves Morrisons' real estate assets
• U.S.-based Realty Income is among the potential parties in discussions with Morrisons
• The report remains unverified by Reuters as negotiations are ongoing

Summary: Morrisons Explores Major Real Estate Transaction

British supermarket chain Morrisons is engaged in negotiations for a substantial real estate deal valued at £600 million ($803 million), according to a Sky News report citing industry sources. Among the potential parties involved in the discussions is U.S.-based Realty Income, a major real estate investment trust.

Key Details:

• Transaction value: £600 million / $803 million
• Potential buyer: Realty Income (U.S.-based REIT) among other interested parties
• Company involved: Morrisons, UK supermarket operator
• Exchange rate: $1 = £0.7472
• Date: July 13, 2026

Market Context:

The deal represents a significant real estate transaction in the UK retail sector. Realty Income's involvement suggests potential sale-leaseback arrangements, a common structure where retailers sell property assets to generate capital while continuing to operate stores through lease agreements. Such transactions allow retailers to unlock property value and improve balance sheet flexibility while maintaining operational control of their store network.

Status:

The discussions remain ongoing with multiple parties, and Reuters noted it could not immediately verify the Sky News report. No definitive agreement has been announced, and terms remain under negotiation.

Implications:

If completed, this transaction would provide Morrisons with substantial capital that could be deployed for business operations, debt reduction, or strategic investments. For Realty Income, acquiring prime UK retail real estate would expand its international footprint and diversify its portfolio. The deal reflects broader trends in retail where companies monetize real estate assets to strengthen financial positions amid evolving market conditions.