BLP act on another landmark transaction for Tesco in its property financing programme
Berwin Leighton Paisner (BLP) advised Tesco, which has been a major client of the firm for over 30 years, on the latest Commercial Mortgage Backed Security (CMBS) issue in its UK programme of sales and leasebacks.
The £685m transaction is one of only a handful of securitised bond issuances in Europe since 2007. It involved 20 trading Tesco stores and a mixed use retail mall anchored with a further Tesco store which is under development. The portfolio comprises retail space distributed throughout mainland UK and Northern Ireland. The transaction also included an equity sale into a 50/50 joint venture with the Tesco Pension Fund.
It was the fourth Tesco CMBS in a series that BLP has advised on since June 2009. BLP lawyers from across the firm – covering practice areas that ranged from financial services, securitisation, real estate and tax – worked on the transaction led by corporate partner, David Robins.
David Robins said:“We are delighted that Tesco, with whom we have a very close working relationship, has trusted us with another issue in its property securitisation programme, using our highly ranked teams across real estate, funds, finance and tax. Given the current market conditions, only those with a very strong income stream are able to initiate transactions of this kind, so the opportunity to get involved in a substantial CMBS is rare.”
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