Tesco in sale and leaseback deal

London Tesco has carried out a sale and leaseback deal for property assets valued at 514 million pounds ($817 million), according to a MarketWatch report.

The transaction, structured as a 50-50 joint venture with an unnamed U.K. pension fund, represents the latest phase in the firm's ongoing program to release value from its property portfolio.

The portfolio will consist of 15 Tesco stores, accounting for approximately 75% of the transaction value, and two distribution centers, accounting for the remaining 25%.

All properties will be leased back to the joint venture with the pension fund on 30-year RPI-linked leases, with an average initial yield of 5.2% for the stores and 6.3% for the distribution centers.