Tesco seeks £500 million from sale of stores

Tesco, Britain's biggest retailer, is in talks to sell up to a dozen of its largest stores in a move that could raise up to £500 million (€635 million), the Sunday Telegraph reported.

The buyer is understood to be a major British pension fund, which according to some property advisers would be the Universities Superannuation Scheme, the second largest pension scheme in the country, the paper said.

Proceeds from the sale and leaseback deal are expected to be used to reduce Tesco's growing debt, it added.

Tesco's property portfolio is estimated to be worth £31 billion. Tesco could not immediately be reached for comment.