Tesco will raise over GBP355m (US$586.8m) through a sale-and-leaseback agreement in South Korea.
The deal, reached with real estate firm Samsung SRA, will see Tesco hand over ownership of four of its Homeplus stores and accompanying mall space.
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“Following the successful sale and leaseback of four Homeplus stores in August 2012, this announcement further demonstrates the underlying value of our operations in Korea and the attractiveness of our property and business to investors,” the company said today (3 January).
Homeplus is Tesco’s largest international business with annual revenues of more than GBP5.3bn and more than 520 stores in the market. However, sales in South Korea have come under pressure in recent quarters due to the weak consumer environment and regulatory restrictions on opening hours.
The move suggests Tesco aims to unlock the value of some of its international property portfolio while moving to a less capital-intensive model. Tesco shares were broadly flat in London today, rising 0.11% at 16.20 GMT.
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