Tesco is bidding to unlock hundreds of millions of pounds from its Asian property empire.

Its Thai subsidiary, Tesco Lotus, is looking to raise more than £300m via an initial public offering for a new property fund secured against 15 of its hypermarkets in Thailand.

The news marks the latest move by Tesco to raise cash via sale and leaseback arrangements involving its stores.

“Today’s announcement of the property fund is in line with the property strategy we unveiled earlier this year and will be a great example of the value we create through our property,” said Tesco chief financial officer Laurie McIlwee.

“By releasing value from our Thai property we will be able to invest in further innovation and growth for our customers and shareholders.

“Thai customers, staff and investors will also be able to share in Tesco Lotus’ success in Thailand.”

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