Tesco plots £300m Thai property IPO

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Tesco plans to raise more than £300m by selling a chunk of property assets in Thailand through a flotation in the country.

The grocery giant's property fund will comprise 15 existing shopping malls, which its Tesco Lotus hypermarkets will continue to lease from the fund. The Tesco Lotus Property Fund, similar to a Real Estate Investment Trust, is part of the group's plans to release value from its £15bn international property portfolio. Behind South Korea and the UK, Thailand is Tesco's third biggest market with more than 800 stores. Tesco will use the IPO proceeds to invest in its Thai operation.