Property Transaction

RNS Number : 1421U

Tesco PLC

18 June 2009

 



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:  

Investor Relations:	Steve Webb	01992 644 800
	Mark George	01992 806 149
Media:	Jonathan Church	01992 644 645

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