ILP set to acquire Tesco commercial property

Monday, September 28, 2009

ILP looks set to acquire a Tesco commercial property portfolio.

By Charlie Gilbert

Part of Tesco's corporate real estate portfolio could be sold to Index Linked Properties (ILP), a recently-established investment company.

It is understood that the firm is interested in a £400 million portfolio as it looks to take advantage of the recent falls in commercial property value, the Financial Times reports.

ILP hopes to acquire commercial property assets with leases associated with the retail prices index, which will afford the company greater certainty in terms of future rental returns.

The newspaper says that ILP and Tesco have entered into an agreement which will allow investors to gain an immediate return on their capital.

It is understood that the £400 million portfolio will be purchased in a sale and leaseback arrangement.

Tesco announced earlier this month that it intends to open a new customer contact centre in the Prescot area of Liverpool.

The facility, which will be based at Kings Business Park, will manage customer service for the supermarket's home phone and broadband services.

Source: ask-re The Property People LLP