Just under £5bn of UK grocery store sale-and-leaseback deals have completed in the past five years, according to the latest data from Savills.

The firm’s data shows £4.8bn UK grocery store sale‑and‑leaseback (S&LBs) transactions have completed since 2021, with S&LBs accounting for 43% of all UK grocery investment deals in 2025.

This trend is also mirrored across Europe, where S&LBs represented 21% of grocery investment activity last year – the highest share in 13 years and more than double the 10-year average of 9.6%.

In the UK, the appeal of food stores has been amplified by tight supply conditions with new development limited due to construction cost inflation and planning constraints.

Recent S&LB activity has been fuelled by retailers seeking to release capital to fund further expansion or reduce existing debt.

George Trimmer, associate director in investment at Savills, said: “The weight of US capital targeting UK grocery assets reflects a very deliberate shift in global investment strategy. UK grocery‑anchored assets are benefiting from exceptionally tight supply, long leases with guaranteed rental uplifts and resilient essential‑spend trading performance.

“Yields had moved out but are now trending inwards, signalling renewed investor confidence towards this sector. When you combine secure, long‑dated income with a repriced market and a constrained development pipeline underpinned by robust fundamentals, it’s clear why US funds have adopted a clearly defined strategy to execute transactions of this nature – and why we expect this trend to continue in the short term.”

Sam Arrowsmith, director and head of out-of-town research at Savills, added: “We’re seeing sale‑and‑leasebacks evolve from a niche capital‑raising tool into a core part of grocery investment strategy. For retailers, they provide an efficient route to unlock capital while retaining operational control.

“For investors, the combination of long leases, index‑linked income and structurally constrained supply creates a defensive profile that is difficult to replicate elsewhere in the market. With development pipelines likely to remain muted and trading performance holding firm, we expect sale-and-leasebacks to continue playing a pivotal role in driving liquidity and pricing stability across the sector.”