Tesco biggest property company in Europe - commercial mortgages

23 April 2007

Tesco has been confirmed as having the most valuable property portfolio in Europe, with property assets totalling some £28 billion according to the Telegraph.

The leading UK retailer is reported to have made almost £140 million in profit from its property division during the course of last year, indicative of the high value of property to the group at large.

Strong demand for commercial property is putting Tesco in a good position to capitalise on its assets. Businesses across sectors continue to seek out desirable premises, with many prepared to take out commercial mortgages.

Experts at the Telegraph argue that commercial property investors are particularly interested in supermarkets due to the fact that they tend to have low rents, averaging some £15 per square foot. Tesco chiefs are hoping to maintain a strong portfolio in the future.

"We have tried to illustrate to the market what the value of the portfolio is, but at the same time keep that strong spine for future years," commented Andy Higginson, Tesco''s finance and strategy director.