rijit Posted February 22, 2012 Share Posted February 22, 2012 I may have read it incorrectly but i understand tesco/lotus are selling shares opening next month they seem to be relentless in their expansion, and 2 me seem to be prepared to take on 7/11 in that v popular and presumably profitable sector. so whats everyone's thought's , good investment long term or short term or bad not bought shares in thailand b4 so advise or info on where and how to buy would be useful thanks Link to comment Share on other sites More sharing options...
chiangmaibruce Posted February 22, 2012 Share Posted February 22, 2012 OK they are not shares - they are launching a listed property fund. I would suggest that you google on "thailand property funds" and do some reading up on the subject. Also, KimEng Securities web site (KELive) regularly features a "Property Fund report" that is worth looking at. Refer here: http://www.nationmultimedia.com/business/Incoming-chief-reaffirms-Tesco-Lotus-commitment-to-30176299.html On average Thai property funds have given pretty good returns the past several years, but of course there is significant variation, with different funds investing in different types of property, for example. Also, the leading property funds vary from year to year ... for example, of the top five thai property funds in 2011, only one (Major Cineplex) was in the top five the year before. 1 Link to comment Share on other sites More sharing options...
exeter Posted February 22, 2012 Share Posted February 22, 2012 Tesco have opened a litle Tesco near us and it looks like they are looking at this sector same as the UK and lets be honest 7-11 are rubbish so if they get the game right they could clean up but this is not the UK and different standards apply so it may not be as simple as that, if you think the fund is weighted in Texsco direction maybe worth a punt. Link to comment Share on other sites More sharing options...
gamini Posted February 22, 2012 Share Posted February 22, 2012 My brother in the UK bought a lot of Lotus shares a long time ago. He made a lot of money. I think they will be a good investment. The are argressively expansive like 7-11 Link to comment Share on other sites More sharing options...
AyG Posted February 23, 2012 Share Posted February 23, 2012 These shares are being issued by Tesco-Lotus so that the property they own (i.e. the supermarkets and smaller store formats) can be shifted off their balance sheet. Tesco-Lotus will then pay rent to the new company. Any investor needs to ask himself what would happen if Tesco-Lotus decides it's time for a cut in the rental rate? These shares are high risk given the dependence upon the continued good will of the parent company. Link to comment Share on other sites More sharing options...
jbaldwin Posted February 23, 2012 Share Posted February 23, 2012 These shares are being issued by Tesco-Lotus so that the property they own (i.e. the supermarkets and smaller store formats) can be shifted off their balance sheet. Tesco-Lotus will then pay rent to the new company. Any investor needs to ask himself what would happen if Tesco-Lotus decides it's time for a cut in the rental rate? These shares are high risk given the dependence upon the continued good will of the parent company. This is not entirely correct. The shares will be issued by a newly formed property investment fund, which is managed by Krung Thai Asset Management. This fund has a contract to buy property from Tesco Lotus. I have been looking for an English Language version of the prospectus. What is very important is to understand the terms of the lease on the property. It is possible that the lease is structured on the basis that Tesco Lotus pays a fixed rate until it decides it's time for a cut in the rental rate.....but I doubt it. Aslo worth noting at Tesco Lotus only accounts for about 40% of total rents from these malls - Homepro, MK and KFC being the next largest tennents. Link to comment Share on other sites More sharing options...
AyG Posted February 23, 2012 Share Posted February 23, 2012 These shares are being issued by Tesco-Lotus so that the property they own (i.e. the supermarkets and smaller store formats) can be shifted off their balance sheet. Tesco-Lotus will then pay rent to the new company. Any investor needs to ask himself what would happen if Tesco-Lotus decides it's time for a cut in the rental rate? These shares are high risk given the dependence upon the continued good will of the parent company. Aslo worth noting at Tesco Lotus only accounts for about 40% of total rents from these malls - Homepro, MK and KFC being the next largest tennents. Who the tenants are isn't really that important. These properties are (currently) owned by Tesco-Lotus, and the likes of MK and KFC currently let from Tesco-Lotus. This really is a play based upon how much Tesco-Lotus is going to be prepared to pay in rent in the future. Link to comment Share on other sites More sharing options...
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