Tesco sells 14 development sites to Meyer Bergman for £250m

Troubled UK supermarket retailer is taking action to protect and strengthen balance sheet

UK retailer Tesco has agreed to sell 14 of its Spenhill development sites in order to protect and strengthen its balance sheet.

The £250m deal will see sites across London, the South East and Bath handed over to Meyer Bergman for mixed-use and residential development. Eleven of the site sales have reached completion, with the remainder due to close shortly.

Tesco recently released its H1 2015 results, which were lower than expected; profits slumped by more than half sliding 55% to £345m, down from £779m in the same period the year before.

Tesco's Chief Executive Dave Lewis 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.”

Meanwhile, Markus Meijer, CEO at Meyer Bergman, added: ”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. We look forward to engaging with local stakeholders so that immediately we can start moving the various Spenhill projects forward.”