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Asda considers Gazeley sale

US retailer Wal-Mart has appointed banking giant UBS to look into a possible sale of Asda’s property development arm Gazeley.

Asda president and chief executive officer Andy Bond said Gazeley had received several unsolicited approaches. He added that it was not considered a principal part of the business.

Gazeley develops distribution warehousing in the UK, mainland Europe and China and has extended its operations to India and Mexico.

Mr Bond said: "Gazeley’s growth has exceeded our expectations and the business has evolved into a global brand.”

He added: "This is not a core business for us. For Gazeley to maintain and extend its market leadership, we believe it should be part of an organisation that specialises in property development and investment, which can better support its international growth.

"We have now decided to review our strategic options, which might include a sale of the business. In the event we do decide to sell the business, we expect to continue our long-term relationship with Gazeley as a client."

Last year, Gazeley invested £325 million in new warehousing space across Europe.