Tesco explores freehold acquisitions to combat inflation
It is understood that the chain is now planning to buy back more of its sites and is targeting a list of prime properties
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Tesco is reportedly looking to acquire the freeholds of more stores in order to minimise its lease liabilities and reduce its exposure to inflation, The Times has reported.
According to its annual accounts, the supermarket chain now owns the freehold of 60% of its 4860-stores, an increase from 40% in 2015.
In the same year, Tesco bought back 21 stores from British Land for £733m as well as its Shrewsbury megastore for £53m in 2016, helping to shield the business from indexed rent reviews.
The Times said it understood that the chain is now planning to buy back more of its sites and is targeting a list of prime properties.
Earlier this year, Tesco already acquired the freehold of 21 supermarkets in a deal worth £431.5m. The chain has said that the deal will generate profits before tax of £110.4m.
