Tesco is to raise £458m through selling off some of its properties and leasing them from the new landlords.

The properties being sold as part of the sale and leaseback arrangement are 12 Tesco stores, accounting for approximately 75% of the transaction value, and two distribution centres, accounting for the remaining 25%.

Together the properties, sold to a variety of pension funds and investment groups, have a combined space of 2.3 million sq ft.

All properties will be leased back to the joint venture on 30-year leases linked to inflation.

The move comes after Tesco earlier this week announced a £430m bond issue in a further bid to raise capital.