Tesco sells Spenhill development sites for GPB250m

Tesco has agreed to sell 14 sites managed by its Spenhill property development arm across London, the South East and Bath for £250m.

The FTSE 100 company announced on Thursday it is selling them to a fund and clients advised by Meyer Bergman.

The sites are suitable for mixed-use and residential development, with 11 sites already sold and the remaining three transactions still to be finalised.

The deal will help Tesco's strategic priority to protect and strengthen its balance sheet.

Tesco chief executive Dave Lewis said the deal has been in the pipeline since the retailer announced it would be building fewer stores.

“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," he said.

Meyer Bergman chief executive Markus Meijer said the investment was an opportunity to give new impetus to the Spenhill projects and contribution to local communities.