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Tesco sells property as it eyes expansion

Tesco sells property as it eyes expansion

Tesco PLC said Thursday that it has sold 605 million pounds (US$1.1 billion) worth of property in leaseback deals, filling the coffers of Britain's biggest retailer for potential further overseas expansion.
Tesco said that the four separate deals _ including 13 Tesco stores and a distribution centre, representing 2.4 percent of the value of its stores _ were the latest phase of its ongoing program to release value from its sizeable domestic property portfolio.
Tesco, the dominant grocer in Britain and the world's No. 3 retailer, announced plans two years ago to raise 5 billion pounds (US$9.4 billion) through property sales.
The supermarket chain currently has around 1,780 stores in Britain, but is expanding rapidly into overseas markets, where it makes more than 25 percent of its sales.
Its international sales soared 18 percent last year, when the company added 8.2 million square feet of store space, including the acquisition of 11 Carrefour stores in the Czech Republic.
Since then, Tesco has made a big push into the crowded U.S. market, opening 61 Fresh & Easy Neighborhood Market stores in California, Nevada and Arizona.
Earlier this month, it announced plans to invest up to 60 million pounds (US$114 million) over the next two years.
Tesco said the stores all yield at least a 4.88 percent return on investment. It has estimated the value of all of its real estate at 31 billion pounds (US$58 billion).
The company's shares were up 0.2 percent at 371.4 pence (US$6.96) on the London Stock Exchange.


Updated : 2021-06-17 11:46 GMT+08:00