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Tesco business properties in £950 million sale and leaseback deal
A deal worth more than £950 million will affect Tesco business properties in the UK, it has emerged.
The supermarket chain agreed on the sale and leaseback deal involving 41 of its commercial properties.
It will see a number of stores being sold to investors for a certain sum, then the retailer leases them back for a set amount of time.
Finance for the move will come from bonds from Tesco Property Finance 3 and the initiative is a joint scheme with the company's pension fund.
The average net yield for each property is expected to be 4.9 per cent and the £950 million deal should assist the organisation in releasing value from its business property portfolio.
Figures from May 2010 revealed Tesco employs a total of 472,000 staff worldwide, with 4,811 stores open across the world.
It has 2,482 outlets in the UK and the sites include Extra, Superstore, Metro and Express formats.
Posted by Darren Purse
The supermarket chain agreed on the sale and leaseback deal involving 41 of its commercial properties.
It will see a number of stores being sold to investors for a certain sum, then the retailer leases them back for a set amount of time.
Finance for the move will come from bonds from Tesco Property Finance 3 and the initiative is a joint scheme with the company's pension fund.
The average net yield for each property is expected to be 4.9 per cent and the £950 million deal should assist the organisation in releasing value from its business property portfolio.
Figures from May 2010 revealed Tesco employs a total of 472,000 staff worldwide, with 4,811 stores open across the world.
It has 2,482 outlets in the UK and the sites include Extra, Superstore, Metro and Express formats.
Posted by Darren Purse
Thu, 8th Jul 2010