Tesco Sold 41 Stores For Over GBP950M With Initial Net Yield 4.9%

7th Jul 2010 16:59

LONDON (Dow Jones)--Tesco PLC (TSCO.LN), the international retailer, said Wednesday that in a new sale and leaseback transaction as part its ongoing program to release value from its U.K. property portfolio, it sold 41 stores for more than GBP950 million realizing an average net initial yield of 4.9%. MAIN FACTS: -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 will be used to help fund new property development projects, both in the U.K. and in international market. -Shares closed Wednesday at 392.2 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 07, 2010 11:59 ET (15:59 GMT)