Tesco agrees sale of Spenhill sites to Meyer Bergman for €338.5 mln (UK)

Tesco has sold 14 sites. Image: | © Richard Croft

Supermarket giant Tesco has agreed the sale of 14 Spenhill development sites across London, the South East and Bath.

 

The sites, previously allocated for new store developments, were sold to privately held real estate investment management firm Meyer Bergman in a transaction worth €338.5 mln (£250 mln).

 

The sites are suitable for mixed use and residential development; Meyer Bergman will now work with local stakeholders so the progression of the various Spenhill projects can be moved forward.

 

With Tesco having recently reported significant annual pre-tax loss of €8.65 bln (£6.4 bln) – the biggest in UK retail history – this recent transaction marks further progress against Tesco's strategic priority of protecting and strengthening its balance sheet.

 

Tesco and Meyer Bergman, the pan-European real estate investment manager, have reached completion on 11 sites, with the remaining sites due to complete in due course.

 

Dave Lewis, Tesco’s chief executive, said: “Since announcing our decision to build fewer stores we have been working with Meyer Bergman to bring forward investment on our Spenhill sites. We are very pleased to have agreed a deal with Meyer Bergman that will bring forward significant investment for these local communities, including opportunities for residential development. We will be working with Meyer Bergman and local councils in the coming weeks to complete a formal handover and look forward to the delivery of investment on these sites.”

 

Markus Meijer, CEO at Meyer Bergman, said: “We see this investment as an opportunity to give new impetus to the Spenhill projects, to make Tesco's place-making ambitions for the sites happen and to make an enduring contribution to local communities. Backed by long-term and prudent global institutional capital, Meyer Bergman has a wealth of experience and expertise in the development and asset management of mixed-use properties.”

 

 Source: Tesco

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