Tesco launches Thai property fund to raise £369 million
Tesco has launched a Thai property fund in an effort to raise £369 million to fund future expansion.
The Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, comprises 17 shopping malls that are anchored by Tesco Lotus hypermarkets in cities and popular tourist destinations across Thailand.
The real estate assets have been bundled into a property fund to be sold as part of an initial public offering on the Bangkok stock market. It will be Thailand's largest IPO for property funds and is part of a growing trend by retailers to squeeze more money from their property assets by selling them to investors and leasing them back.
Tesco Lotus chief executive Chris Bush said in a statement that the fund "is well positioned to capitalise on the steady growth of the Thai economy, the strength of the retail sector and increasing wealth and consumption across the country."
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