Tesco has agreed the sale of fourteen Spenhill development sites including ones in Hounslow, Hillingdon and Fulham, to a fund and clients advised by Meyer Bergman for £250m.
Tesco say the sites are “suitable for mixed-use and residential development”, and that the sale is driven by Tesco’s strategic priority of protecting and strengthening its balance sheet.
Tesco and Meyer Bergman, the pan-European real estate investment manager, have reached completion on eleven sites, with the remaining sites due to complete in due course.
Dave Lewis, Chief Executive of Tesco 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.”
The sites are understood to include Fulham High Street, Hounslow (Hounslow bus garage), New Barnet (East Barnet Road), and the Hillingdon Master Brewer Site.