TLGF to raise Bt7.5bn
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The unitholders of Tesco Lotus Retail Growth Freehold and Leasehold Property Fund (TLGF) have approved the issuance and allocation of up to 650 million new investment units and fund raising of up to Bt7.5 billion, for the investment in five new Tesco Lotu
The fund will then extend the number of Tesco Lotus hypermarket shopping malls in its portfolio from 17 to 22.
The new investment units will be offered and allocated to all eligible existing unitholders whose names appear in the register of unitholders on November 5.
Somchai Boonnamsiri, CEO of Krung Thai Asset Management Plc which manages the fund, “TLGF has continued to perform well since the initial public offering in March, reflecting the confidence that investors have in TLGF’s growth potential. The investment in the five new assets will further enhance TLGF’s growth prospects and add to its geographically diversified portfolio of high-quality assets.”
The five new shopping malls to be invested in by TLGF are located in Phuket, Salaya, Nakorn Si Thammarat, Rangsit and Bangpoo. The asset acquisition price of each shopping mall will not exceed 110 per cent of the lower of the appraised values from two independent appraisers and the transaction is expected to result in yield accretion to existing unitholders.
The fund's IPO in March raised approximately Bt18.4 billion, making the offering Thailand's largest.
