Tesco sells 14 development sites in London, South East and Bath to Meyer Bergman for £250m

Catherine Neilan
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When it comes to selling Tesco's assets, every little helps (Source: Getty)

Tesco is selling 14 developments sites for a total of £250m as the troubled supermarket continues to sell-off assets while it shores up its balance sheet.

The Spenhill sites, which are split across London, the South East and Bath, have been sold to a fund and clients advised by real estate manager Meyer Bergman. It is expected that the sites will be developed into mixed use and residential premises.

Tesco has reached completion on 11 sites and the rest will complete "in due course". It was reported earlier this month that the supermarket had been in talks to sell a further 10 sites.

Chief executive Dave Lewis, who has spearheaded the sale of Tesco's assets as the company attempts to plug the gap in its profits, said: "Since announcing our decision to build fewer stores we have been working with Meyer Bergman to bring forward investment on our Spenhill sites.

"We are very pleased to have agreed a deal with Meyer Bergman that will bring forward significant investment for these local communities, including opportunities for residential development.

"We will be working with Meyer Bergman and local councils in the coming weeks to complete a formal handover and look forward to the delivery of investment on these sites."

Meyer Bergman chief executive Markus Meijer said the investment was "an opportunity to give new impetus to the Spenhill projects, to make Tesco's place-making ambitions for the sites happen and to make an enduring contribution to local communities".

Last week, Tesco revealed group operating profit had dropped 55 per cent while UK sales were down 1.1 per cent - less than expected, although still a poor enough performance to prompt analysts to urge "Drastic Dave" Lewis to be more drastic.

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