4th Jan 2007 14:30
Tesco PLC04 January 2007 TESCO ANNOUNCES NEW PROPERTY JOINT VENTURE Tesco today announced a new property joint venture to realise £445m from its UKproperty portfolio. Joining forces with British Airways Pension Fund, Tesco has entered into apartnership that will release funding for its future growth, whilst maintainingthe flexibility to operate and adapt its property assets. The 50/50 joint venture follows Tesco's announcement in April 2006 of a propertysale and leaseback programme that is expected to realise proceeds of up to £5bnover five years from its extensive freehold estate. The joint venture takes advantage of attractive conditions within the debt andequity markets, being reflected in an initial yield of less than 4.5%. The soledebt provider was Deutsche Bank AG London. The transaction includes 16 Tesco stores, accounting for 2% of Tesco UK propertyassets by gross floor area. The joint venture is for a term of 20 years with anearly termination option in 2016. Annual rental uplifts are linked to a limitedprices index calculated by reference to RPI, collared between zero and 3.5% perannum. Contacts: Investor Relations: Steve Webb 01992 644 800Press: Jonathan Church 01992 644 645 Angus Maitland 020 7379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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