Tesco Lotus Growth Fund (TLGF)
Why has Tesco chosen to list the property fund this year?
We are always exploring opportunities to add shareholder value. We have explored a number of options, with a property fund currently the most suitable mechanism to achieve this by allowing us to unlock the value of our portfolio and create recurring streams of long-term fee income.
Are you happy with TLGF's launch? What do you think contributed to the increase in the share prices?
We are very happy with the listing of TLGF. It is considered one of the most successful property fund IPOs [initial public offerings] in Thailand ever, with regard to sizing, pricing and the overwhelming responses from both institutional and retail investors. This shows that investors have a high level of confidence in the Tesco Lotus brand and our potential business growth.
As you are a foreign company, are you allowed to own properties and operate a property-leasing business, or launch a property fund?
Tesco Lotus is a local company, and is recognised as such by the Thai Ministry of Commerce. Tesco Lotus is investing, operating and reinvesting in the Thai economy. Tesco Lotus now employs more than 40,000 full-time staff and services over 35 million customers each month.
What is the long-term plan for the property fund?
We hope to see the fund grow through property acquisitions. The fund will have a right of first refusal to acquire both existing and future properties from Tesco Lotus.