UK supermarket chain Tesco will divest its interests in Turkish unit Kipa and restaurant chain Giraffe, as part of its strategy to sell non-core assets.

Purchasing Giraffe in 2013 for £49m, Tesco is likely to announce the sale of the restaurant business this week, while Kipa will be divested to Migros, Financial Times reported, citing people familiar with the matter.

"Giraffe is being divested as it could not meet expectations."

Tesco operates around 170 Kipa stores in Turkey and employs 10,000 people.

Comprising supermarkets and small convenience stores, Kipa outlets offer loyalty cards and online shopping services.

Tesco plans to divest underperforming assets in offshore makets. Last year, it divested its South Korean business for £4bn, and last month, it divested close to 9% interest in Asian e-retailer Lazada.

Giraffe is being divested as it could not meet expectations; last December, it saw a £4.1m loss for the full year. It is likely to be divested to private investment firm Boparan Ventures, which owns a number of restaurants in the UK.