Britain's biggest retailer Tesco today unveiled a fresh sale-and-leaseback property deal to unlock cash for international expansion.
The move comes amid a global land grab by the world's biggest retailers, including rivals Wal-Mart and France's Carrefour, seeking to tap new geographical and product markets as growth slows at home.
Tesco, the world's fifth-largest retailer, said the £650 million joint venture with British Land would generate net proceeds of £570 million pounds.
It is the second and largest sale-and-leaseback deal to date by the retailer since it set itself the goal last year of raising £5 billion in five years through property sales with the bulk of that to be used to power its expansion.
"The venture enables Tesco to release funding for its future growth, whilst maintaining the flexibility to operate and adapt its property assets," it said in a statement.
It also follows investor and private equity pressure on Carrefour and Britain's number three supermarket owner J. Sainsbury to unlock value from their huge real estate assets after record property price rises.
Tesco, like world leader Wal-Mart and Carrefour, the number two supermarket owner, are targeting emerging markets China, India and Russia. It has also earmarked at least £250 million for its much anticipated US entry in the autumn, while at home it is rapidly expanding into non-food.