Tesco, one of the UK’s big four grocers, will sell 13 of its stores as well as a depot in sale and leaseback deals with property investors to raise more than £600m to fund growth.

The deals, with the Universities Superannuation Scheme, fund management group PRUPIM, LaSalle Investment Management and Canada Life, take the total sum raised by Tesco from sale and leaseback deals to nearly £2bn in the past two years. The disposals are part of a plan announced by the retailer in 2006 to release £5bn over five years.

Three of the deals involve 100% sales to PRUPIM, LaSalle Investment Management and Canada Life and the fourth is a joint venture with the Universities Superannuation Scheme. All the properties will be leased back to Tesco with rental agreements linked to the retail prices index.
The 13 stores account for 2.4% of the value of Tesco’s UK stores’ portfolio. So far, 35 stores have been sold and leased back since the £5bn strategy was announced. Tesco’s property portfolio has an estimated value of more than £30bn and the grocer owns the freeholds on more than 80% of its stores, compared with about 60% at Sainsbury’s.