Tesco PLC (TSCO.LN), the world's third-biggest retailer by sales, Thursday said it has sold and leased back 14 properties worth GBP458 million as part of its continuing program to extract more value from its vast property portfolio in the U.K.

The move comes a day after it raised GBP431 million by selling a commercial mortgage-backed bond that gave hope to the global securitization market. It was the first CMBS that has been sold to private investors in Europe or the U.S. since the start of the credit crisis, and appealed to investors because it was simply structured.

Tesco said it will sell and lease back 12 stores and two distribution centers in a deal that will be structured as a 50-50 joint venture with Tesco Pension Trustees Ltd.

It carried out a similar deal last August, when it sold and leased back 13 properties worth GBP605 million. The properties were sold to the Universities Superannuation Scheme, a U.K. pension fund; Prupim, the property-investment arm of U.K. insurer Prudential PLC; LaSalle Investment Management, a unit of Jones Lang LaSalle Inc., and Canada Life Assurance Co.

Tesco's latest property sale and lease back deal is consistent with the group's strategy, Seymour Pierce analyst Freddie George. He has a buy rating on Tesco, noting the retailer is his favourite stock within the U.K. grocery sector because of its potential at home within non-food and oversees operations.

Tesco has sold and leased back properties worth GBP2.66 billion since 2006, a company spokeswoman said. Tesco had 2,282 stores and 30 distribution centers in the U.K as at Feb. 28. The group owns around 80% of its property.

The 14 properties have a gross internal area of more than 2.3 million square feet, and will be leased back to the joint venture on 30-year Retail Prices Index-linked leases, with an average initial yield for the stores of 5.2% and 6.3% for the distribution centres.

Tesco, the U.K.'s biggest retailer, said the transaction is being primarily funded by the issue of the commercial property-backed bonds by Tesco Property Finance 1 PLC, the debt-issuing entity of the joint venture, credit-linked to Tesco.

At 1526 GMT, Tesco shares were up 1 pence, or 0.2% at 357 pence in a higher London market. The stock has lost 6.6% of its value over the past 12 months.

-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; lilly.vitorovich@dowjones.com