Case study

Innovative approach to sale and leasebacks on acquisition of Tesco Extra for Charities Property Fund

Posted by : Gavin Acheson

The team at Farrer was able to tackle this complex property deal by combining their commercial property acumen with their understanding of the Fund’s objectives.

Client

Farrer advised the Charities Property Fund on the structured acquisition from Tesco of its Tesco Extra store in Mansfield for £43million. The innovative sale and leaseback terms allow Tesco considerable flexibility in return for a 20-year lease on a new store with a number of associated benefits for the Fund and Tesco.

“The team at Farrer was able to tackle this complex property deal by combining their commercial property acumen with their understanding of the Fund’s objectives both as a common investment fund and as a charity,” says Harry de Ferry Foster Director of Investment, Cordea Savills LLP.

“They had to overcome some key issues of constitutional and funding significance, but we were delighted that they not only secured such a positive outcome by working so effectively with the deal’s other advisers, but that it was all completed within a particularly challenging timeframe!”