Supermarket chain Tesco will raise over GBP 355m ($US586m) through a sale-and-leaseback agreement for a number of its HomePlus stores in South Korea, Just Food reports.
Tesco has confirmed completion of the deal which will see four HomePlus stores sold to real estate agency Samsung SRA and then leased back to the retailer. HomePlus.Co is Tesco’s largest international business with over 520 stores in South Korea, according to Just Food.
Under the terms of the agreement, Tesco will hand over ownership of the four stores to Samsung, along with associated mall space. HomePlus has annual revenues of more than GBP5.3bn, but sales have reportedly suffered in recent quarters due to the weak consumer environment and regulatory restrictions on opening hours.
According to Just Food, the move suggests that Tesco is aiming to move to a less capital intensive model by divesting some of its international property assets.
A Tesco spokesperson is quoted as saying: “Following the successful sale and leaseback of four Homeplus stores in August 2012, this announcement further demonstrates the underlying value of our operations in Korea”.
Source: Just Food