Tesco Lotus raises $450 million from public investors

The Thai unit of UK supermarket chain Tesco has raised a total of Bt18.4 billion $602 million from the initial public offering of a property fund comprising 17 malls anchored by Tesco Lotus stores. However, 25%, of the deal was bought by Tesco-controlled Ek-Chai Distribution System, suggesting the property fund really only raised 75%, or Bt13.8 billion $450 million from public investors.

The deal was priced at the top end of the range at Bt10.40 per share, giving an implied yield of 6.5% for the fiscal year to February 2013. Thai property funds are similar to real estate investment trusts Reits and the Tesco fund, which goes by the somewhat...