TESCO IRELAND is planning to offload a number of its properties here in a move to generate up to €70 million for future expansion.
It is understood that the supermarket giant will next month advertise the sale of a number of undeveloped sites that it has decided it no longer wants.
These sites were originally purchased by Tesco for new shops, but have never been developed.
In addition, Tesco will market a handful of stores and shopping centres that it owns as sale and leaseback opportunities for investors.
The transactions will be handled by commercial estate agent DTZ.
The timing of the sales is interesting given the weakness in the Irish property market. The commercial sector, however, has proved more resilient than the residential sector and Tesco would be considered a blue-chip tenant by investors.
The Irish company's move is in line with a strategy pursued by its UK parent.
Tesco yesterday announced the conclusion of four sale and leaseback transactions in Britain that bagged the retailer £605 million (€763 million).
It is understood that 10 or more properties could be placed on the market by Tesco Ireland. It hopes to generate €60-€70 million from the deals.
Sources have indicated that the retailer plans to sell unused sites in Fermoy, Cashel, Loughrea and Naas. It also plans to sell a property in Tallaght that was formerly used as a distribution depot.
This activity has since been moved to a new, modern warehousing facility in Donabate, north Dublin and the building in Tallaght is lying idle.
Tesco is also believed to be considering selling a couple of the shopping centres that it owns.
It is understood that the Golden Island shopping centre in Athlone could be one of those that will be offered to investors, although this could not be confirmed.
This centre has about 40 retail units, including a large Tesco store, and 1,000 car parking spaces.
Informed sources said that Tesco's decision to offload some of its Irish property assets was not a signal of any retrenchment here by the supermarket chain, which has a 26 per cent share of the grocery market.
Tesco plans to open 16 new stores in Ireland by the end of its financial year in February 2009 as part of a €150 million expansion.
Four stores have already opened close to Dublin city centre, along with outlets in Kilrush, Athlone and Carlow.
The supermarket group is also thought to be planning to open shops in Ballinrobe, Ballinamore, Birr, Bettystown, Tramore, Maynooth, Drogheda, Cashel and Bailieborough.
The company has already completed a couple of large sale and leaseback transactions in the Irish market. A few years ago, it sold its Wilton property in Cork for about €85 million, while more recently it secured around €100 million for its distribution depot in Donabate.
