Tesco to float Thai property fund
Tesco has announced plans to raise more than 14bn baht (around Â€335m) by selling shares in its Thai property fund. The supermarket giant said it will use the money to fund expansion in the country.
The initial public offering will include 15 shopping malls each anchored by a Tesco Lotus hypermarket, as well as freehold land and ground leases. Tesco Lotus will continue to lease all 15 hypermarkets from the fund.
Laurie McIlwee, Tesco's Chief Financial Officer, said: “Today's announcement of the Property Fund is in line with the property strategy we unveiled earlier this year and will be a great example of the value we create through our property.
"By releasing value from our Thai property we will be able to invest in further innovation and growth for our customers and shareholders. Thai customers, staff and investors will also be able to share in Tesco Lotus' success in Thailand."
The final structure of the fund is subject to regulatory approval. Tesco said it expects the fund to be the largest retail property fund in Thailand.
Tesco Lotus operates over 660 stores in the country.
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