TLGF to invest in new Tesco Lotus-anchored shopping mall
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The investment committee of Tesco Lotus Retail Growth Freehold and Leasehold Property Fund (TLGF) recently approved investment in Tesco Lotus Extra Navanakorn.
In addition, it approved a plan to refurbish existing properties invested by TLGF in Srinakarin, Prachachuen, Salaya, Amata Nakhon, Samui, Nakhon Si Thammarat and Phitsanulok. The refurbishment is expected to increase competitiveness and foot traffic at the properties as well as deliver future growth for the unit-holders. The acquisition and the refurbishment will be fully funded by a bank loan without the need for capital injection.
In this connection, the committee agreed on holding an extraordinary general meeting of unit-holders on November 4 to consider and approve the investment in the new property.
Tesco Lotus Extra Navanakorn is a freehold property next to Navanakorn Industrial Estate, one of the largest estates in Thailand.
The property has 40,012 square metres of gross floor area, 19,902sqm of net lettable area and 99.6 per cent occupancy with an appraised value of Bt2.109 billion.
The final acquisition price will not exceed 110 per cent of the lower of the two appraised values prepared by two independent appraisers, according to the regulations of the Securities and Exchange Commission. This investment will bring TLGF’s portfolio to a total of 23 Tesco Lotus hypermarket-anchored shopping malls, with the freehold proportion up from 75 per cent to 77 per cent.
Somchai Boonnamsiri, chief executive officer of Krung Thai Asset Management (KTAM), the management company of TLGF, said this investment reiterated TLGF’s strategy and reflected its commitment to deliver growth for unit-holders.
Sompong Rungnirattisai, property director at Tesco Lotus, said: “Tesco Lotus Navanakorn is a large shopping mall anchored by Tesco Lotus in the ‘Extra’ format, located in the crowded Navanakorn industrial area. The mall serves customers’ needs with a wide variety of tenants, and has a proven track record. Navanakorn will start generating income for TLGF from the first day.”
Since its establishment and flagship initial public offering last year, TLGF has invested in 22 Tesco Lotus hypermarket-anchored shopping malls in prime locations across Thailand.
TLGF is one of the largest listed property funds in Thailand, with a market capitalisation of more than Bt30 billion.
