Sale raises £445m
Tesco has raised£445 million by selling 16 stores into a joint property venture.
The UK's number one retailer has agreed a deal to transfer the stores, which account for 2 per cent of Tesco's UK property portfolio by floorspace, into a 50/50 joint venture with the British Airways Pension Fund.
The deal follows Tesco's announcement last April that it plans to raise a total of£5 billion from its property estate over the next five years, through sale and leaseback deals.
The leases are for 20 years, with an option to end the deal early in 2016. Rental increases are linked to inflation. Finance for the deal was provided by Deutsche Bank.
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