Tesco has confirmed a sale and leaseback deal in excess of £950m.

The deal, which was speculated last week, comprises 41 stores, for a total of £950m with an average net initial yield of 4.9%.

The grocer said it is the latest phase in its ongoing programme to release value from its UK property portfolio.

The proceeds will be used to fund new property developments in the UK and in international markets.

The deal is structured as a 50-50 joint venture with Tesco Pension Fund Trustees Limited as trustee of the Tesco PLC Pension Scheme.