Asda has launched a process to sell off car parks at five of its supermarkets as the grocer seeks to raise funds and address its substantial debt burden.

According to The Telegraph, the supermarket chain is looking to offload nearly 10 acres of car parking space and nearby fields, which property sources estimate could provide a £5 million cash boost to the business.

Newsteer, which is advising Asda on the sales, has informed potential developers about "surplus space" at stores in Slough, Reading, Burgh Heath near Epsom, Tilbury in Essex and Cardiff. Developers could convert the land into new homes or shops adjacent to existing Asda supermarkets, with drive-through operators potentially interested in the sites.

The move comes as part of executive chairman Allan Leighton's efforts to revive the struggling retailer. Since taking over last November, Leighton has focused on lowering prices and restoring what he calls the "Asda DNA" to stem an exodus of customers, with sales down by 5 per cent in the four weeks to 23 February, according to Kantar figures.

Asda is facing pressure over its high level of debt, which stood at around £6bn in December. Last year alone, the company paid £441 million in finance costs and borrowed an additional £155 million in December to help pay off more pressing debts.

A spokesman for Asda told the newspaper: "It's common practice for national retailers with large property portfolios like Asda, Tesco and Sainsbury's to explore how best to make use of surplus land in their property estate. Prospective parties interested in these sites are advised to contact Newsteer."

This is not Asda's first property sale. Last May, the company sold the freehold of its 10-acre Park Royal superstore in Ealing to Barratt, Britain's largest housebuilder.

At that time, Ian Lawrence, Asda's head of mixed-use developments, indicated further property deals were likely, saying: "We have surplus car parks where we could do other uses such as retirement living or student living, if it's in the right location."

Newsteer has set out minimum levels for how many parking spaces Asda requires at each location and said developers could bid to take either all five sites on 125-year leases or individual locations.

Last week, Leighton admitted that Asda's problems are "self-inflicted" and claimed that previous owners, the Issa brothers, had "ripped the heart out of the colleagues" through cost-cutting measures. Since then, one of the brothers, Zuber Issa, has sold his stake to private equity firm TDR Capital.

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