Tie-up part of sale and leaseback programme
Tesco and developer British Land have announced a property deal that will net Britain's largest retailer£570 million.

Under the 50:50 partnership, Tesco will sell 21 of its UK stores to the joint venture it has set up and lease them back. Tesco will invest the proceeds of the 20-year joint venture in growing its retail business.

The deal is the second phase of a sale and leaseback programme announced in April last year. It follows a similar deal struck this January with British Airways Pension Fund, which raised£445 million for the retailer.

Broker Seymour Pierce said: 'This is more good news, because it shows that Tesco - unlikely to be a private equity target like Sainsbury's - is committed to unlocking the value of its property portfolio in a similar fashion.'

Tesco has three other property ventures with British Land, including four retail parks, shopping centres and a further 13 Tesco stores.

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