Tesco, the UK’s biggest retailer, has completed two sale and leaseback deals on its properties with a total value of £308m.

The supermarket said that three stores will be sold into a £199m joint venture with the Tesco Pension Scheme in which the scheme will take a 50pc stake. Meanwhile another four stores will be sold to a Prupim-managed annuity fund in a sale and leaseback deal worth £109m.

Initial yields on the deal will be between 5.25% and 5.3%.

Tesco has an ongoing strategy to realise value from its property portfolio. It has used the proceeds to reduce its debt.

Already this year the retailer has made deals with the Universities Superannuation Scheme, bp’s Pension Fund, La Salle Investment Management, Prupim and Canada Life.

Daily Telegraph