Tesco’s joint venture company with British Land, BLT Properties, has refinanced its superstores portfolio.

BLT Properties’ new £185m seven-year loan facility provided by the London branch of BayernLB was used to repay its existing bank loan.

Alongside the refinancing, the joint venture was extended for a further 10 years, the second renewal after its establishment in 1996 and first renewal in 2003.

BLT owns a portfolio of eight Tesco superstores and one retail park anchored by a Tesco superstore. It is one of five joint ventures between British Land and Tesco, which together hold properties valued at £1.8bn.

Separately, Prupim, the property investment arm of UK insurer Prudential, has bought three UK supermarkets occupied by Sainsbury’s for £125m for a fund that hedges inflation risk. The sale and leaseback deal, made for M&G’s Secured Property Income Fund, is for Sainsbury’s superstores in Worcester, Truro and Huddersfield, leased for 25 years with rent reviews linked to the retail price index.

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