Linklaters has advised investment firm Song Capital on its ground debt transaction with UK supermarket chain Morrisons, with reported net proceeds of £331m.

Under the terms of the agreement, Song Capital will secure the right to receive a secured income stream from 76 of Morrisons’ supermarkets for the next 45 years.

The deal reflects the increasing popularity of bespoke long-dated financings as a source of stable, secured cashflows for institutional investors.

Reza Taylor commented:

“We are delighted to have supported Song Capital on this fantastic transaction for them and the CD&R and Morrisons teams.”

The Linklaters team was led by partner Reza Taylor and associate Mark Watts, and worked closely with Slaughter and May who advised Song Capital on the real estate aspects of the transaction.