Tesco is looking to acquire the freeholds of more stores in an effort to minimise its lease liabilities and reduce its exposure to persistently high inflation, The Times reported.
The supermarket owns the freehold of 60% of its 4,860-store portfolio, up from 44% in 2015, according to its annual accounts.
Tesco is understood to have a target list of prime properties as part of its plans to buy back more of its best-performing sites, sources told the outlet.
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The supermarket bought back 21 food stores from British Land for £733m in 2015 and its Shrewsbury megastore in 2016 for £53m, helping to shield the business from indexed rent reviews.
Earlier this year, Sainsbury’s acquired the freeholds of 21 supermarkets from Supermarket Income REIT in a deal worth £431.5m
The grocer said the assets acquired generated aggregate profits before tax of £110.4m in their most recent respective financial years.
Meanwhile, both Morrisons and Asda have been entering into more sale-and-leaseback deals on its property portfolios to help lower its soaring debt piles.
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