3rd Jan 2014 10:34
LONDON (Alliance News) - Tesco PLC said Friday that its wholly owned subsidiary, Homeplus Co. has successfully completed a sale and leaseback transaction for four of its stores in South Korea.
Tesco's Homeplus has concluded the transaction with Samsung SRA, a real estate fund manager focused on commercial real estate in Korea and overseas.
The deal covers a portfolio of four Homeplus stores and accompanying mall space, with total gross proceeds in excess of GBP355 million, said Tesco.
Tesco said in a statement that the deal demonstrates the value of its operations and property in Korea.
Tesco entered South Korea in 1999 in a joint venture with Samsung; Homeplus Co. is now a wholly owned subsidiary of Tesco.
Homeplus in South Korea is Tesco's largest international business with revenue of over GBP5 billion in 2012/13. Homeplus has more than 550 stores in South Korea and employs over 26,000 people.
Shares in Tesco were trading flat at 330.065 pence per share Friday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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