Tesco seen seeking 500 mln pounds from sale of stores

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Tesco seen seeking 500 mln pounds from sale of stores

17/08/2008 12:58

LONDON (Reuters) - Tesco , Britain’s biggest retailer, is in talks to sell up to a dozen of its largest stores in a move that could raise up to 500 million pounds, the Sunday Telegraph reported.

The buyer is understood to be a major British pension fund, which according to some property advisers would be the Universities Superannuation Scheme, the second largest pension scheme in the country, the paper said.

Proceeds from the sale and leaseback deal are expected to be used to reduce Tesco’s growing debt, it added.

Tesco’s property portfolio is estimated to be worth 31 billion pounds.

Tesco could not immediately be reached for comment.

(Reporting by Marc Roca; editing by Rory Channing)