Property funds at risk from capital controls

The situation is forcing foreign investors not to exercise their capital-increase rights, Virapan said. The Ticon Property Fund is seeking to increase its capital by Bt2.3 billion, but foreign shareholders, when offered the right to increase their investment, have declined to do so despite the fact that this would see the percentage of their stake diminish. However, GE Real Estate Investment Holdings last month acquired Bt525 million worth of shares in the Ticon Property Fund, which is managed by ING Funds.