Shareholders express disapointment that anticipated property business does not materialise
Supermarket Sainsbury鈥檚 is to disappoint shareholders as it refuses to return money to investors through a sale of its property portfolio.
It is expected that plans next month will reveal that the group鈥檚 property portfolio is to be refinanced using a string of joint ventures. The capital raised will then be put towards extending the company鈥檚 landbank.
But the group鈥檚 shareholders, Robert Tchenguiz and the Qatari government wanted the chain to be split into an operating business with a separate property company. This would have meant the money would have been returned to shareholders.
The move by Sainsbury鈥檚 not to return money to investors is believed to have been taken badly by shareholders.
It has been suggested that the chain is copying Tesco鈥檚 thinking of operating a hybrid scheme of joint ventures and securitisation to raise money while keeping a tight hold on property.
Despite the investors displeasure with the move a source close to Sainsbury鈥檚 said the chain had to do what as right for its business: 鈥淲hy would you lose control of your most valuable asset [property]?鈥�
Also this week it has been revealed that Tesco鈥檚 company secretary, Lucy Neville-Rolfe is a shareholder in rival superstore Wm Morrison.
