Cash-hungry Thai firms want to spin off some USD2.8 billion assets into property funds this year. But deals could come unstuck because of investor unease about economic policy since last September's military coup. A spate of capital raising by funds created by the likes of Central Pattana PCL , Ticon Industrial Connection and Major Cineplex Group would help build critical mass in Thailand's fledgling USD1 billion listed property fund market, which might draw more foreign investment. But the cost for foreigners to fulfil a new requirement to hedge their investments for one year effectively wipes out one percentage point from the 7-8 per cent yields property funds offer.
Reuters
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