Tesco has agreed to sell 14 development sites, owned by the company’s Spenhill development arm, for £250m.

The sites, in London, the South East and Bath have been purchased by clients and funds advised by Meyer Bergman, the privately held real estate investment management firm.

Dave Lewis, Chief Executive at Tesco, said: “Since announcing our decision to build fewer stores we have been working with Meyer Bergman to bring forward investment on our Spenhill sites.

“We are very pleased to have agreed a deal with Meyer Bergman that will bring forward significant investment for these local communities, including opportunities for residential development.

"We will be working with Meyer Bergman and local councils in the coming weeks to complete a formal handover and look forward to the delivery of investment on these sites.”

All of the 14 sites are suitable for mixed-use and residential developments.

11 have already been sold with the remaining three expected to be completed soon.

Markus Meijer, CEO at Meyer Bergman, said: “We see this investment as an opportunity to give new impetus to the Spenhill projects, to make Tesco's place-making ambitions for the sites happen and to make an enduring contribution to local communities.”

One site, the former Government offices in Tolworth, was welcomed by Councillor David Cunningham, Lead Member with responsibility for Growth at Kingston Council.

“There has been a great deal of speculation in recent weeks about who was purchasing the land and what their intentions are. Meyer Bergman have now made it clear that they intend to pursue the existing planning application for 700 homes,” said Cllr Cunningham.

“We now look forward to engaging with the new owners to see how appropriate development on this important site can be progressed.”