Tesco has completed a sale and leaseback transaction as it continues with its programme to release value from its UK property portfolio.

20 shops and one site and mall under development have been sold for £685m for an average net initial yield of 4.7%.

The deal is a 50-50 joint venture with Tesco Pension Fund Trustees as a trustee of the Tesco PLC Pension Scheme. The transaction is primarily being funded by fixed rate notes issued by Tesco Property Finance 4 PLC.

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