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Sompong Rungnirattisai (left), Tesco Lotus Property’s director, and Somchai Boonnamsiri, CEO of KTAM, show the Plus Mall Srinakarin, one of the star assets of the TLGF. |
Tesco, the UK hypermarket chain, plans to raise 17 billion baht by selling shares in a Thai property fund.
Sompong Rungnirattisai, property director of Ek-Chai Distribution System Co, a Thai unit of Tesco, said the proceeds would be used for its retail business expansion in Thailand.
The property fund will generate revenue from the rent of 17 Thai shopping malls where Tesco Lotus stores are located. Tesco will lease its hypermarkets from the property fund.
The Tesco Lotus Retail Growth Freehold and Leasehold Property Fund (TLGF) will have the largest initial public offering of a property fund in Thailand, Ek-Chai said in its statement yesterday.
"The 17 shopping malls to be transferred to the fund have combined appraisal values of more than 17 billion baht. Our property fund will be listed on the SET next month," the statement said.
The malls are scattered around Thailand, including two branches in Bangkok and its vicinities.
Krung Thai Asset Management (KTAM) is the fund manager while Phatra Securities is the financial adviser for the deal and local underwriter, while Merrill Lynch, Nomura Securities and Royal Bank of Scotland are underwriters for foreign investors.
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