Tesco is in talks to sell a £400m portfolio of properties to a newly formed investment company seeking to take advantage of the opportunities of the recent falls in the value of UK commercial property, the Financial Times reported.

The company, to be called Index Linked Properties, will seek investor support for an Aim listing, the newspaper said.

It aims to acquire real estate assets at a low point in the cycle with leases that are linked to the retail prices index or that have other guaranteed uplift rent review mechanisms to provide greater certainty on future rental returns.

The company will be structured as a Jersey-based closed-ended investment company. DTZ Investment Management and Clearbrook are to manage it. Nomura and Fairfax are acting as advisers to the launch, the FT said.

Tesco refused to comment.

Real estate bankers say there is a long pipeline of potential IPOs this autumn. There are several prospective management teams talking with investors about backing their plans, although advisers report that shareholders need to see a strong record of past success and a clear strategy for future growth, according to the FT.

There is likely to be less appetite for simple “cash-shell” investment companies that do not have any assets. The lack of stock on the market means that companies sitting on cash may have problems finding suitable investments.