Property magnate confident the chain has a future or a buyer could be found, despite City critics.

Ardeshir Naghshineh, Woolworths’ biggest shareholder, believes the embattled retailer’s shares are worth at least 24p – six times higher than their price as Retail Week went to press and valuing the retailer at£342 million.

The figure is indicative of his confidence that the variety store group can be revived or a buyer found, despite City scepticism about Woolworths’ future.

Speaking exclusively to Retail Week, the property magnate said: “This is still a very strong business, but the management has been weak. The business is changing now.”

Naghshineh, who has appointed property firm CB Richard Ellis to conduct an independent valuation of the store estate, said the sale of Woolworths leases and reverse premiums paid by landlords could raise as much as£400 million.

Woolworths would present a “perfect opportunity” for a potential buyer to acquire a “ready-made chain in prime locations”, Naghshineh argued. He said: “Don’t forget that most of the stores have open A1 permission, which would mean that they could sell food as well.”

Naghshineh, who heads the Norwich-based Targetfollow Group, which owns Centrepoint in London, said the sale of nine Woolworths leases to Tesco for£9 million last month and the disposal of leases on four central London properties to Waitrose for£25.5 million earlier this year was evidence the predominantly leasehold estate is undervalued. Another deal with a grocer is believed to be imminent.

He said: “The share price is indicating that the UK retail operation is worth nothing, which is rubbish.” He added that 600 stores of the 800-strong portfolio are on prime pitches and that “somebody will be prepared to pay between£100,000 and£5 million for many of the leases”.

In August Woolworths hired Steve Johnson as chief executive to turn the business around, but there has also been bid speculation. Baugur and Iceland founder Malcolm Walker made a bid for Woolworths that month, but later backed away.

Naghshineh expects to receive the valuation within “days”.

Woolworths declined to comment.

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