Tesco Plc , the world's No.3 retailer, launched on Monday the initial public offering of its Thailand property fund, aiming to raise up to $585 million to finance future expansion.

The fund, formally called Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, will offer shares at a price range of 9.65-10.40 baht each, putting the total deal at up to 18 billion baht, Tesco's Ek-Chai Distribution System Co unit said in a statement.

At that price, the fund would have a yield of 6.5 percent to 7 percent a year.

(Reporting by Khettiya Jittapong; Writing by Elzio Barreto; Editing by Jonathan Hopfner)