16:14 | 16.06.09
By Neil Spike
Tesco selling £415.6m of its properties in the first property securitisation for two years.
The supermarket giant is carrying out a £415.6m sale-and-leaseback transaction as part of its £5bn programme of property disposals that it began back in 2006.
The sale involves it issuing £415.6m of commercial mortgage-backed securities through a special purpose vehicle, Tesco Property Finance 1. Arranged by Goldman Sachs, the issue represents a "true-sale securitisation" of two loans, secured by 12 supermarkets and two distribution properties let on long-term leases guaranteed by Tesco. Rental uplifts are fixed at 2.5-5% for the first five years and are RPI-linked afterwards.
Hans Vrensen, head of securitisation research in Europe at Barclays Capital said "We would see a successful placing of these bonds as a positive sign for the long-term viability of the European CMBS sector,".