|* Tesco CEO: Dave Lewis|
by Benson Agoha | Business
Tesco Thursday announced it is to sell some of its properties across London, as it continues efforts to turn around the business.
ln a News release made available to Woolwich Online, Tesco said it has agreed to sell its Spenhill sites to Meyer Bergman, with which it has been working closely, for £250m.
The properties are scattered across London, the South East and Bath, Tesco said. The money is expected to help reduce the loss recently announced for the past trading year.
Tesco said the transaction covers sites suitable for mixed-use and residential development and marks further progress against it's strategic priority of "protecting and strengthening its balance sheet."
So far, eleven sites have been agreed upon, with more to be completed in due course, according to the statement.
Dave Lewis, 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. We look forward to engaging with local stakeholders so that immediately we can start moving the various Spenhill projects forward.”
Tesco has been struggling since a £250 million (overstated result) hole was discovered in its balance sheet two years ago, prompting the parachuting of current CEO. The figure was later found to be £263 million.
Tesco's restructuring hasn't been easy, with budget Super markets Lidl and Aldi making a remarkable dent on the market size of the bigger stores.
In September this year, Tesco sold its South Korean business, pulling in £4 billion in the process.