TLGF unitholders approve capital increase and investments in five more properties
TLGF continues impressive growth since IPO in March
The unitholders of Tesco Lotus Retail Growth Freehold and Leasehold Property Fund ("TLGF") have approved the issuance and allocation of up to 650 million new investment units and fund raising of up to Baht 7,545 million on a public offering basis to existing unitholders. The approval was granted at an extraordinary general meeting of TLGF's unitholders held on Friday October 5, 2012, after TLGF’s Investment Committee had previously approved the capital increase. The proceeds raised will be used for investment in five additional Tesco Lotus hypermarket-anchored shopping malls, bringing TLGF’s portfolio to 22 high-quality assets.
The new investment units will be offered and allocated to all eligible existing unitholders whose names appear in the register of unitholders as of November 5, 2012. The last day on which investors may purchase TLGF units and still be entitled to subscribe for new investment units under the preferential public offering is October 31, 2012. Any investment units that remain unsubscribed for will be offered to other investors. The final offering price will be determined by book-building process and will be announced at a later date.
Somchai Boonnamsiri, CEO of Krung Thai Asset Management Public Company Limited ("KTAM"), the Management Company of TLGF, said “TLGF has continued to perform well since the initial public offering in March, reflecting the confidence that investors have in TLGF’s growth potential. The investment in the five new assets will further enhance TLGF’s growth prospects and add to its geographically diversified portfolio of high-quality assets.”
The five new shopping malls to be invested in by TLGF are located in Phuket, Salaya, Nakornsrithammarat, Rangsit Nakornnayok and Bangpoo. These new assets are well performing, with proven track records, and will start generating income for TLGF from the first day, resulting in no dilution to investors. The asset acquisition price of each shopping mall will not exceed 110% of the lower of the appraised values from two independent appraisers and the transaction is expected to result in yield accretion to existing unitholders.
Sompong Rungnirattisai, the Property Director of Tesco Lotus, said “The establishment of TLGF gave investors an opportunity to share in the success of Tesco Lotus as Thailand’s leading retailer and shopping mall operator. TLGF’s new investments will allow unitholders a chance to continue to grow with TLGF and with Tesco Lotus. The proceeds from this transaction will be reinvested into Tesco Lotus’ business operations, helping to create superior shopping experiences for our customers.”
Details about the offering, including the final number of new investment units offered, the final offering price, the offering period and subscription details will be determined and publicly announced at later dates.
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 (the "Securities Act"), 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.
