Tesco sells off Spenhill land in multi-million pound deal

In an effort to scale back expansion plans and bolster its balance sheet, supermarket chain Tesco has agreed to sell more than a dozen Spenhill development sites across the South in a new multi-million pound deal.

Worth £250m, the transaction will see Tesco sell 14 sites in London, Bath and the South East to a fund and clients managed by European real estate investment firm Meyer Bergman.

So far, the two companies have completed transactions on 11 of the developments.

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.

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He added: “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.”

The decision to sell the sites closely follows news of the supermarket giant’s significantly lowered profits and store closures.

The CEO of Meyer Bergman, Markus Meijer, 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.”

Mr Meijer continued: “We look forward to engaging with local stakeholders so that immediately we can start moving the various Spenhill projects forward.”