Tesco wants to "release value" from property portfolio

Tesco wants to "release value" from property portfolio

Tesco has completed the sale and leaseback of several Homeplus stores in South Korea, netting the retailer around GBP300m (US$476m).

Tesco said yesterday (23 August) that it has successfully concluded the deal with IGIS Asset Management, a local retail property investment consortium.

The UK-based retailer has sold and leased back the property housing four Homeplus stores and accompanying mall space. "This announcement highlights the continued success of Tesco's strategy to release value from our international property portfolio," said Tesco.

Homeplus in South Korea is Tesco's most successful international business, with sales of around GBP5bn in its last fiscal year. Homeplus has more than 450 stores in South Korea and employs over 27,000 people.

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Tesco announces property sale and leaseback deal in South Korea

Tesco has today announced the successful completion of a sale and leaseback transaction in South Korea. Homeplus Co. Ltd, a wholly owned subsidiary of Tesco Plc, has concluded the transaction with a consortium of investors led by IGIS Asset Management, a local leader in retail property investment.

The deal comprises a portfolio of four Homeplus stores and accompanying mall space, with total gross proceeds in excess of £300m.

This announcement highlights the continued success of Tesco's strategy to release value from our international property portfolio.

 

Notes to Editors:

  • Tesco entered South Korea in 1999 in a joint venture with Samsung; Homeplus Co. Ltd is now a wholly owned subsidiary of Tesco Plc
  • Homeplus in South Korea is Tesco's most successful international business with revenue of over £5bn in 2011/12
  • Homeplus has more than 450 stores in South Korea and employs over 27,000 people
  • Homeplus serves six million customers per week

Original source: Tesco