18th Jun 2009 15:06
18 June 2009
TESCO ANNOUNCES NEW PROPERTY DEAL
Tesco today announced a new sale & leaseback transaction involving £458 million of Tesco's property assets 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 Tesco Pension Trustees Limited as trustee of the Tesco PLC Pension Scheme. The portfolio will consist of 12 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 2.3 million sq. ft.
All properties will be leased back to the joint venture on 30-year RPI-linked leases, with an average initial yield for the stores of 5.2% and 6.3% for the distribution centres.
The transaction is being primarily funded by the issue of fixed rate notes by Tesco Property Finance 1 PLC (the debt-issuing entity of the joint venture, credit-linked to Tesco PLC).
Contacts:
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Investor Relations: |
Steve Webb |
01992 644 800 |
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Mark George |
01992 806 149 |
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Media: |
Jonathan Church |
01992 644 645 |
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