Value supermarket retailer Netto has teamed up with Iceland to develop a series of schemes on which both companies will trade from adjacent stores.

Three sites are to be redeveloped to make space for the partnership, in Huddersfield, Birkenhead and Sunderland.

Netto will undertake the development works and let units to Iceland once they are complete.

Iceland has agreed terms for the units, in which it will trade adjacent to Netto stores being developed on site.

Each Iceland store has been taken on a 15-year lease and is about 6,700 sq ft (620 sq m).

Netto has also acquired a former Kwik Save and Iceland store as part of the deal, at Cannock in the West Midlands, which it will redevelop to open a 12,000 sq ft (1,110 sq m) Netto store.

Netto property director William Smith said: “Netto and Iceland are already trading successfully together in a number of locations and I am confident that each of these developments will be commercially beneficial to both retailers.”

Netto has also agreed a deal with St Modwen and Wilkinson at Wythenshawe, Manchester, in which St Modwen will develop a two-unit space for both retailers to open up stores.

Netto will open a 10,335 sq ft (960 sq m) supermarket and Wilkinson has signed for a 16,110 sq ft (1,500 sq m) shop.