Property Transaction

RNS Number : 0058P

Tesco PLC

07 July 2010

TESCO ANNOUNCES NEW PROPERTY DEAL

Tesco today announced a new sale & leaseback transaction in the latest phase of its ongoing programme to release value from its UK property portfolio.

41 stores have been sold for a total consideration in excess of £950m for an average net initial yield of 4.9%

The deal is structured as a 50-50 joint venture with Tesco Pension Fund Trustees Limited as trustee of the Tesco PLC Pension Scheme.

The transaction is being primarily funded by fixed rate notes issued by Tesco Property Finance 3 PLC.

The proceeds from the transaction will be used to help fund new property development projects, both in the UK and in international markets, in line with Tesco growth strategy.

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