Tesco has agreed to sell 14 Spenhill development sites for £250m as it seeks to strengthen its balance sheet.
- Tesco sells 14 sites owned by property arm Spenhill
- Supermarket rakes in £250m to help strengthen its balance sheet
- Boss Dave Lewis “very pleased” with the deal
The UK’s largest retailer has been battling to pay down debt following its profit overstatement crisis and increasing costs related to the grocery price war. It has revealed previously it had put the brakes on new large developments in order to conserve cash and reflect changing shopping habits.
The embattled grocer said the deal marks “further progress against Tesco’s strategic priority of protecting and strengthening its balance sheet”.
Tesco has sold the sites across London, the Southeast and Bath to a fund and clients advised by real estate investment manager Meyer Bergman. The sites are suitable for mixed-use and residential development, the grocer said.
Tesco and Meyer Bergman have reached completion on 11 sites. The remaining sites are “due to complete in due course”, Tesco said.
Tesco chief executive Dave Lewis said: “Since announcing our decision to build fewer stores we have been working with Meyer Bergman to bring forward investment on our Spenhill sites.
“We are very pleased to have agreed a deal with Meyer Bergman that will bring forward significant investment for these local communities, including opportunities for residential development.”