Parkson Unit Renews Shanghai Tenancy Until Dec 31, 2036

KUALA LUMPUR, May 8 (Bernama) -- Parkson Holdings Bhd’s 54.97 per cent-owned subsidiary Parkson Retail Group Ltd (PRGL) has renewed the tenancy of its Shanghai Hongqiao retail property in China for a further 10 years until Dec 31, 2036.

Parkson said in a filing with Bursa Malaysia today that Shanghai Hongqiao Parkson Development Co Ltd, an indirect wholly owned subsidiary of PRGL, has entered into the Shanghai renewal agreement with Shanghai Changning Real Estate Management Co Ltd today. 

“The group has been operating and managing department stores in Shanghai for more than 30 years where the group and the Parkson brand maintains outstanding reputation, goodwill and market recognition, having accumulated numerous brands, customers and government resources.

“Shanghai continues to be the country’s most populous financial centre, boasting the highest per capita disposable income and rising prospects, making it a battleground of great strategic significance for all enterprises wishing to establish their business operations in China,” it said.

Parkson said the consideration for the acquisition of the right-of-use asset recognised under International Financial Reporting Standard 16 (IFRS 16) is approximately 374.5 million yuan (one yuan = RM0.58).

Parkson said the transaction constitutes a very substantial acquisition under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Ltd as the highest applicable percentage ratio exceeds 100 per cent.

It said the monthly fixed rent for the property is 5.19 million yuan from July 1, 2026 to Sept 30, 2031, and 5.34 million yuan from Oct 1, 2031 to Dec 31, 2036.

It added that Shanghai Changning Real Estate Management has agreed to grant a total of 10 months rent-free periods during the tenancy term, in addition to two renovation periods totalling six months.

-- BERNAMA