TLGF to invest in one additional Tesco Lotus-anchored shopping mall
Bangkok, 3 October 2013: The Investment Committee of Tesco Lotus Retail Growth Freehold and Leasehold Property Fund (TLGF) today approved an investment in Tesco Lotus Extra Navanakorn by TLGF. In addition, the Investment Committee approved the plan to refurbish existing properties invested by TLGF namely, Srinakarin, Prachacheun, Salaya, Amatanakorn, Samui, Nakornsrithammarat and Pitsanulok. The refurbishment is expected to increase competitiveness and foot traffic of the properties and deliver future growth for the unitholders. The acquisition and the refurbishment will be fully funded by a bank loan without the need for capital injection.
In this connection, the Investment Committee approved that the Extraordinary General Meeting of unitholders be held on 4 November 2013 to consider and approve the investment in the new property.
Tesco Lotus Extra Navanakorn is a freehold property located next to Navanakorn industrial estate, one of the largest industrial estates in Thailand. The property has 40,012 square meters of gross floor area, 19,902 square meters of net lettable area and 99.6% occupancy rate with an appraised value of 2,109 million baht. The final acquisition price will not exceed 110% of the lower of the two appraised values prepared by two independent appraisers according to the SEC regulation. This investment will bring TLGF’s portfolio to a total of 23 Tesco Lotus hypermarket-anchored shopping malls with the freehold proportion up from 75% to 77%.
Somchai Boonnamsiri, CEO, Krung Thai Asset Management Public Company Limited (KTAM), the Management Company of TLGF, said, “This investment reiterates TLGF’s strategy and reflects our commitment to deliver growth for our unitholders.”
Sompong Rungnirattisai, Property Director, Tesco Lotus said, “Tesco Lotus Navanakorn is a large shopping mall anchored by Tesco Lotus in “Extra” format, located in the crowded Navanakorn industrial area. The mall serves customers’ needs with a wide variety of tenants, and has a proven track record. Navanakorn will start generating income for TLGF from the first day.”
Since its establishment and flagship IPO in 2012, TLGF has invested in 22 Tesco Lotus hypermarket-anchored shopping malls in prime locations across Thailand. TLGF is one of the largest listed property funds in Thailand with a market capitalization of over 30 billion baht (information as of 3 October 2013).
For more information contact:
Ek-Chai Distribution System Co Ltd (Tesco Lotus)
Ariya Silakorn 02 797 9000 ext 5507,
ariya.silakorn@th.tesco.comKrung Thai Asset Management PCL
Saengsiri Netumporn 02 670 4900 ext 1235,
saengsiri@ktam.co.th