Britain’s biggest retailer, Tesco, said it has regained sole ownership of 21 superstores in a deal with British Land that forms part of a plan to strengthen its core UK business.
Tesco said the 21 superstores and associated debt were part of a joint venture between Tesco and property company British Land, and were all subject to retail price index (RPI)-indexed rent increases. In exchange for the superstores, British Land will take over Tesco’s stake in three shopping centres, three retail parks and three standalone stores, which are held in two other joint ventures between the two firms.
Tesco will continue to lease the stores at these sites at market rents which are not subject to RPI-indexed increases.
As part of the deal Tesco will also receive £96m from British Land.