Sainsbury’s will reportedly reject proposals from two high-profile shareholders to split the supermarket group into two separate companies.
Sainsbury’s largest shareholder, Qatar-based investment group Delta Two, which holds a 17.4% stake, and billionaire property tycoon Robert Tchenguiz, who holds a 5% stake, have been calling for the chain’s board of directors to separate the grocery business from its estimated £5-10bn property portfolio.
However, under plans to be revealed next month, the board of directors will instead refinance its property portfolio either through securitisation or joint ventures, and use the capital to reinvest in property by extending its landbank, according to reports in the Sunday Telegraph.
A source told the paper: “Why would you lose control of your most valuable strategic asset? If they sold the property they would just face increased pressure on rents and uncertainty over the control of the property.”
Sainsbury’s largest shareholder, Qatar-based investment group Delta Two, which holds a 17.4% stake, and billionaire property tycoon Robert Tchenguiz, who holds a 5% stake, have been calling for the chain’s board of directors to separate the grocery business from its estimated £5-10bn property portfolio.
However, under plans to be revealed next month, the board of directors will instead refinance its property portfolio either through securitisation or joint ventures, and use the capital to reinvest in property by extending its landbank, according to reports in the Sunday Telegraph.
A source told the paper: “Why would you lose control of your most valuable strategic asset? If they sold the property they would just face increased pressure on rents and uncertainty over the control of the property.”
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