Tesco, the UK’s leading supermarket, has remained silent on reports that it is in talks to sell-off some of the freeholds to its larger stores in a deal that could raise around GBP500m (US$933.4m).


According to a report in the Sunday Telegraph, a deal that will see Tesco sell around 12 freeholds to pension fund Universities Superannuation Scheme and then lease the stores back is expected to be announced in a matter of weeks.


The report, which cites property executives, said the deal would be structured as a joint venture with the pension fund, allowing Tesco to retain control and flexibility over its portfolio.


Tesco signed similar deals with British Land and the British Airways Pension Fund in 2007, raising more than GBP1bn. The company likewise inked a smaller deal with Prudential earlier this year.


The proceeds from the sale are expected to be used to reduce Tesco’s rapidly increasing debt, which has attracted rising levels of concern from investors.

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When contacted by just-food, the company declined to comment on “rumour and speculation”.

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