Tesco’s Thai hypermarket chain Lotus is set to provide investors with the chance to share in its success in Thailand, it was announced today.
A statement released by the company indicated that the business plans to launch an initial public offering (IPO) of a Thai property fund with an appraised value of over 14 million baht (over £300 million).
Tesco Lotus Property Fund will initially comprise 15 existing shopping malls, all of which are anchored by a Tesco Lotus store and are located in prime locations across the country.
All 15 hypermarkets from the fund will continue to be leased by Tesco Lotus.
Laurie McIlwee, Tesco’s Chief Financial Officer, said: “Today’s announcement of the property fund is in line with the property strategy we unveiled earlier this year and will be a great example of the value we create through our property.
“By releasing value from our Thai property we will be able to invest in further innovation and growth for our customers and shareholders.
“Thai customers, staff and investors will also be able to share in Tesco Lotus’ success in Thailand.”
Tesco has reported significant growth in south-east Asia in recent years, but announced in August that it is to sell its Japanese operations after failing to make its network of smaller stores in the country profitable.