More property funds anticipated
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The Stock Exchange of Thailand expects a continued growth in property fund industry, after developers raised a total of Bt30 billion through the funds in the first eight months of this year.
Chanitr Charnchainarong, senior vice president at the Stock Exchange of Thailand, said that the 8-month value is the record high. Of total, new funds raised Bt27.4 billion while existing funds expand their size by Bt2.59 billion. In 2010 and 2011, property funds raised only Bt8.59 billion and Bt14.46 billion, respectively.
"The value should rise further, through fund raising by new and existing funds," he said.
At present, 39 property funds are listed, with combined market capitalisation of Bt149.28 billion. Among four listed this year is Tesco Lotus Retail Growth Freehold & Leasehold Property Fund (TLGF), which raised the biggest-ever amount worth Bt18.4 billion. CPN Commercial Growth Property Fund is prepared for the listing this month.
