New property fund for Lotus, Thailand
22 September 2011
Tesco Lotus has today announced plans to launch an initial public offering (IPO) of a Thai property fund which will provide investors with the chance to share in its success in Thailand.
With an appraised value of more than 14 billion Baht (equivalent to more than £300m) the Tesco Lotus Property Fund will initially comprise 15 existing high quality shopping malls, each anchored by a Tesco Lotus hypermarket, in prime locations across Thailand, as well as freehold land and ground leases. Tesco Lotus will continue to lease all 15 hypermarkets from the Fund.
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".
The application to establish the Tesco Lotus Property Fund IPO was filed today with the Securities and Exchange Commission (SEC) of Thailand. The initial public offering will be the largest retail property fund in Thailand and the most geographically diverse, with a strong portfolio of properties in Bangkok, provincial capitals and popular tourist areas. The final structure of the Fund is subject to market conditions and approval by the SEC.
For more information, please contact:
Steve Webb, Investor Relations Director
+44 (0)1992 644 800
Chris Griffith, Investor Relations Director
+44 (0)1992 806 149
Trevor Datson, Group Media Director
+44 (0)1992 646 606
Greg Sage, International Corporate Affairs Director
+44 (0)1992 644 454
Notes for editors
Tesco is one of the world's leading retailers with over 5,400 stores across 14 countries, employing nearly 500,000 people.
Tesco Lotus is the leading retailer in Thailand, with over 800 stores across five formats (Plus mall, Extra, Hypermarket, Talad and Express). Tesco Lotus employs over 38,000 people and serves 35 million customers every month.
Our property strategy ensures that Tesco retails from the best located and designed properties, wherever it operates. As a result, we also create long-term shareholder value from property development. We invest substantially more in new stores and land than we divest each year, and when we do divest, the profits we release reflect the value we create as a developer. During our full-year results in April, we announced that a proportion of future property profits would come from our international countries.
A property fund listed on the Thai Stock Exchange is similar to a Real Estate Investment Trust (REIT) in other markets. On approval units in the property fund will be made available to both individual and institutional investors through a public offering.
The distribution of this announcement may be restricted by law in certain jurisdictions. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.
This announcement is not an offer of securities for sale in the United States or elsewhere. The securities referred to herein are not being registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the securities referred to herein in the United States. Copies of this announcement are not being, and should not be, distributed in or sent into the United States, Canada, Japan or Australia.
The distribution of this document (such term including any form of communication) is subject to the restrictions provided in section 21 (restrictions relating to "financial promotion") of the Financial Services and Markets Act 2000 ("FSMA"). With respect to the United Kingdom, this document should be addressed solely only to persons who (i) have professional experience in matters relating to investments ("investment professionals") and fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005, as amended (the "Order"), (ii) fall within Article 49(2)(a) to (d) of the Order or to whom (iii) this communication may otherwise lawfully be communicated (all such persons together with Qualified Investors (as defined in the Prospectus Directive) being referred to as "Relevant Persons"). This document must not be acted on or relied on in the United Kingdom by persons who are not Relevant Persons. Any investment to which this document relates is available only in the United Kingdom to Relevant Persons, and will be engaged in only with such persons.
With respect to the member states of the European Economic Area which have implemented the Directive 2003/71/EC of the European Parliament and the Council of November 4, 2003 (the "Prospectus Directive"), no action has been undertaken or will be undertaken to make an offer to the public of the securities referred to herein requiring a publication of a prospectus in any relevant member state. As a result, the securities referred to herein may not and will not be offered in any relevant member state except in accordance with the exemptions set forth in Article 3(2) of the Prospectus Directive, if they have been implemented in that relevant member state, or under any other circumstances which do not require the publication by Ek-Chai of a prospectus pursuant to Article 3 of the Prospectus Directive and/or to applicable regulations of that relevant member state.