Cambridge University‘s richest college, Trinity, has entered into a property deal thought to be worth £440 million with the UK‘s leading retailer Tesco, it emerged yesterday.
According to The Sunday Telegraph (TST), Trinity has acquired a 50 per cent stake in a portfolio of 11 of the retailer‘s supermarket stores, including ones in London, Bradford and Doncaster.
Trinity is thought to have a commercial property portfolio worth more than £800 million but this will be the first time it has invested in supermarkets.
While not confirming the identity of its new third-party investor, a Tesco spokesman told TST: “Last year we set a strategy of realising sustainable property profits in the range of £250 million to £350 million per annum across the group, which is broadly equivalent to the value we create through property development activities.
“This latest deal is part of that programme and our JV joint venture partner is an excellent, experienced property investor.”
Income generated by Trinity‘s investments is used to fund education and research at the college and amongst its portfolio is the freehold to land surrounding the O2 Arena.
Earlier this month Tesco reported “disappointing” sales for its Christmas trading period and CEO Philip Clarke has said that the grocer needs to invest more in staff and stores.