Tesco PLC (TSCO.LN), the world's fourth-biggest retailer by sales, said Wednesday that it has sold 41 stores in a sale and leaseback deal that will generate some GBP950 million as part of its continuing program to extract more value from its vast U.K. property portfolio.

The transaction is structured as a joint venture with the supermarket operator's pension fund trustees, and is the fourth such deal by Tesco in 18 months.

Last year it sold and leased back 12 stores and two distribution centers in a GBP458 million joint venture deal with Tesco Pension Trustees Ltd; it sold and leased back 13 properties worth GBP605 million to various other investors including the Universities Superannuation Scheme, Prupim, the property-investment arm of U.K. insurer Prudential PLC (PUK), LaSalle Investment Management, a unit of Jones Lang LaSalle Inc. (JLL), and Canada Life Assurance; and in October it completed a GBP514 million sale and leaseback deal involving 15 stores and two distribution units with an unidentified U.K. pension fund.

In line with its deal in October the transaction is being primarily funded by fixed rate notes issued by Tesco Property Finance 3 PLC.

-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
Jones Lang LaSalle (NYSE:JLL)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Jones Lang LaSalle Charts.
Jones Lang LaSalle (NYSE:JLL)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Jones Lang LaSalle Charts.