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Revealed: Tesco Hoarding Land That Could Build 15,000 Homes

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http://www.theguardian.com/business/2014/jun/26/tesco-hoarding-land-that-could-build-15000-homes-supermarket

Tesco, the UK's largest supermarket chain, is hoarding land and buildings covering an area big enough to build 15,000 homes – a Guardian analysis has revealed.

The size of the embattled retailer's land bank, theoretically large enough to replicate the government's proposed new garden city at Ebbsfleet, is far greater than previously estimated and remains on the grocer's books despite much of it being bought to build the out-of-town Extra superstores which are no longer financially attractive as shoppers turn their back on the big weekly grocery shop.

The scale of Tesco's landholdings are revealed as the grocer's under-pressure boss Philip Clarke steels himself for a barracking from disgruntled shareholders at Friday's today's AGM. Clarke has said it could take three years to turn the struggling UK chain around. Its most recent sales figures were the worst in a generation.

Perhaps we could see Tesco houses to boost profits?

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The article mainly focuses on Tesco although Sainburys also gets a brief mention.

However for sure land/property hoarding is very widespread in the retail sector and for instance McDonald's apparently has a similar type of property/land portfolio.

So they are effecting their employees through their zero hours contracts as well as pushing up their house prices through their land/property hoarding.

Edited by billybong

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Given how Tesco stores are already peppered throughout the UK and the their financial situation isn't great, now would probably be a good time to sell up to developers.

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Given how Tesco stores are already peppered throughout the UK and the their financial situation isn't great, now would probably be a good time to sell up to developers.

Indeed given the current price of building land is the balance sheet a bit richer than analysts are giving it credit. I guess they would need to apply for a change of use though...more houses that might be needed against more supermarkets that probably aren't needed. But wouldn't want to crash the housing market by flooding the market with building land. Planners are primarily about protecting boomer's assets after all.

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I'd guess Tescos et al would be happy to sell some of their out-of-town sites for building development (think of the uplift in value).

I expect the problem is they don't have/expect permission for the change of use. If they got it though they'd be laughing all the way to the bank. They'd probably go and buy up a load more sites and then apply for even more changes of use!

[Edit: Crash monitor beat me to it]

Edited by libspero

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