5th Oct 2009 14:55
5 October 2009
TESCO ANNOUNCES NEW PROPERTY DEAL
Tesco today announced a new sale & leaseback transaction involving property assets valued at £514 million in the latest phase of its ongoing programme to release value from its UK property portfolio.
The deal will be structured as a 50-50 joint venture with a UK pension fund. The portfolio will consist of 15 Tesco stores, accounting for approximately 75% of the transaction value, and two distribution centres, accounting for the remaining 25%. The properties involved have a gross internal area in excess of 2.7 million sq. ft.
All properties will be leased back to the joint venture on 30-year RPI-linked leases, with an average initial yield of 5.2% for the stores and 6.3% for the distribution centres.
The transaction is being funded primarily by fixed rate notes issued by Tesco Property Finance 2 PLC (the debt-issuing entity of the joint venture, credit-linked to Tesco PLC).
Notes for editors
1. The marketing of the fixed rate notes issued by Tesco Property Finance 2 took place during the week commencing 14 September.
Contacts:
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Investor Relations: |
Steve Webb |
01992 644800 |
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Mark George |
01992 806149 |
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Media: |
Jonathan Church |
01992 644645 |
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