Tesco has completed a £685m sale and leaseback of 21 stores in the “latest phase of its ongoing programme to release value from its
In a stock market announcement the supermarket giant said twenty trading stores and one store and mall under development have been sold for a total consideration in excess of £685m for an average net initial yield of 4.7%
The deal is structured as a 50-50 joint venture with Tesco Pension Fund Trustees Limited as trustee of the Tesco PLC Pension Scheme.
The transaction is being primarily funded by fixed rate notes issued by Tesco Property Finance 4 PLC.
Tesco has been active in the property-backed debt market, raising £1bn through notes supported by 41 stores last year. It also undertook two similar CMBS deals in 2009, raising just under £1bn.
paul.norman@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
