*

Asda sells 24 stores and a depot, leases them back

*

Proceeds will be invested in business and used to cut

leverage

*

Asda has been losing market share to rivals

(Adds detail on buyers paragraph 4, more detail throughout)

LONDON, Nov 20 (Reuters) - British supermarket group

Asda has raised 568 million pounds ($742 million) from

sale-and-leaseback agreements on 24 stores and a depot, it said

on Thursday, providing a cash boost as sales continue to fall.

Asda, majority owned by private equity firm TDR Capital,

said it plans to use the proceeds to fund investment in the

business and reduce net leverage.

The group had net debt of 3.8 billion pounds at the end of

last year.

Four stores have been sold to DTZ Investors and leased back,

10 stores and a depot at Lutterworth, central England, have been

sold to Blue Owl Capital and leased back, and 10 stores have

been sold to a joint venture between Blue Owl Capital and

Supermarket Income REIT ( SUPIF ) and leased back.

Asda, which trails industry leader Tesco ( TSCDF ) and

Sainsbury's ( JSNSF ), said all the properties are subject to

25-year lease agreements, with an option to renew for an

additional 10 years. It will continue to operate all sites as

normal.

Asda has been losing market share and is taking a hit to

profit to reset its business.

It is expected to publish third-quarter results next week.

Industry data published earlier this month showed Asda's

sales fell 3.9% over the 12 weeks to November 2 year-on-year,

with its market share down 1 percentage point to 11.6%.

Asda is in danger of soon being overtaken by discounter

Aldi, which has a market share of 10.6%.

Former owner Walmart ( WMT ) retains a 10% stake in Asda.

($1 = 0.7651 pounds)