Tesco launches Thai property fund

Monday 20th February 2012

Supermarket giant Tesco has launched a Thai property fund in a bid to raise £370m as part of its efforts to fund expansion and the refurbishment of its shops in Britain.

The company has listed 17 shopping malls, anchored by its Tesco Lotus hypermarkets, up for sale. They have been packaged into a fund, which is being sold as part of an initial public offering on the Bangkok stock market – making it the largest flotation in Thailand since 2006.

Commenting on the flotation,  Clive Black of Shore Capital told the press: "As part of a long-term strategy this seems sensible and shows it is interested in balancing the needs of shareholders and the business. It is good active asset management."

According to Tesco's annual report, it has close to £25bn of properties on its balance sheet.