Tesco is selling off land once earmarked for new supermarkets to property investor Meyer Bergman for £250m, which could enable up to 10,000 homes to be built.
The UK’s largest retailer has agreed to sell off 14 sites owned by its Spenhill development arm, a subsidiary that deals with property and regeneration.
The company will be disposing of its sites across London, the South East and Bath, as it seeks to scale back operations to help improve its balance sheet.
The deal is part of the firm’s plan to abandon the development of 49 stores, which it announced earlier this year.
The news comes after what has been a torrid two years for the supermarket giant, which has seen falling sales and a decline in profits.
Tesco revealed last week that operating profit had fallen 55% to £354m in the first half of the year, while UK sales were down 1.1%.
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.
