"We think securitisation is so attractive to us, and to our investors, that we should turn the leaseholds into securitised deals. We're discussing this with landlords now," says Coull. He believes that securitisation offers a more collaborative approach to landlord-tenant relationships, removing the confrontation which has been seen as an inevitable part of traditional relationships.

"We want to move towards the partnerships you find in the US and in Europe," says Coull. "And we're looking for more certainty in our costs, rather than the five year hike in rents which you can't control." A final advantage is the greater ability to renovate or change the company's premises, which Coull negotiated as part of the two securitisation deals concluded in 2000, raising around £550 million.

Coull has been mildly surprised that no major UK retailers have followed Sainsbury's example in securitisation, although he believes that Marks & Spencer have held serious negotiations towards that goal. Commercial PFI (Private Finance Initiative) has been another alternative which some are taking instead. "I believe we are going to see traditional sale and leaseback dying," says Coull, "to be replaced by a range of things, including securitisation."

Equally, Sainsbury's own portfolio is changing dramatically, according to Coull. "Five years ago, we had only one format of property," he explains. "Now, through changing planning regulations, environmental regulations and needs to service people, we've moved into town centres, into convenience versions, as well as developing more hypermarkets."

Alongside, Sainsbury's recently formed its own property arm, called ("with stunning originality," quips Coull) Sainsbury's Property Company, which has already been involved in developing innovative mixed use projects in Lambeth, High Wycombe and Maidenhead, with permission to redevelop a dilapidated but well-located retail centre in Peterborough.

"We realised that we are sitting on property assets which could work much harder for us," says Coull. "We have eight acre sites with glorious visibility and locations, but there's nothing there but a store in the corner and a lot of black tarmac." Sainsbury's Property Company aims to specialise in mixed-use developments, creating greater value from existing and future property assets.

"Developing projects for third parties is certainly in the business plan," says Coull, who is chairman of the new operation, "though for this current year we'll be concentrating on getting Sainsbury's assets in shape."

For more information please contact Huw Davies