National department store chain, Debenhams, has held meetings this week to discuss unlocking the value in its property portfolio, as it looks to cut down its mounting debt.

Debenhams has been in talks with potential investors looking to strike a deal on nine of its 165 department stores. The company has reportedly been in talks with property specialist King Sturge about running the business.

It has been reported that Debenhams is considering a sale and leaseback deal over 25 years, where they would sell their properties freehold, and then lease them back off the new owners.

The potential property deal is the latest move by the retail chain to strengthen its balance sheet and reduce net debt which stood at £927m last year.

Debenhams, which declined to comment on the speculation, reported in April this year that it had slashed its debts by 45 percent. Last month it completed a refinancing deal on its debt by signing a £650 million credit facility.