Parkson subsidiary extends lease at China Museum

  • Business
  • Saturday, 08 Jun 2019

A Parkson outlet in China

PETALING JAYA: Parkson Holdings Bhd’s 54.97%-owned Hong Kong-listed subsidiary Parkson Retail Group Ltd (PRGL) extended its leasing agreement with landlord China National Arts and Crafts Group Company Ltd for a property in Beijing.

Tenant PRGL has been leasing about 2,000 sq ft inside the China National Arts and Crafts Museum in Beijing since 1999, a Bursa filing said.

Under this recently signed agreement, the lease will be from June 2019 to December 2021, with total rent payable at 2.5 million yuan, a circular said. The rental shall be paid on quarterly basis.

The space will be used as retail store, entertainment, property management and related ancillary services, the circular said. The circular said the agreement allows “continuity of the Group’s retail operation at a place which is familiar to the froup’s customers for long term.”

According to the company, entering into the deal is regarded as an acquisition of asset as the group has to recognise the property as a right-of-use asset under the International Financial Reporting Standard (IFRS) 16. The amount recognised by the PGRL group in line with IFRS 16 is about 2.2 million yuan (RM1.3 mil), Bernama reported.

In February, 2019 the group also inked seven lease agreements with the same landlord for other areas of the museum totalling about 257,000 sq ft to Nov 2028. PRGL was the existing tenant for the properties, Bernama reported.

The total rental payable for those properties, where it has been a tenant since October 1993, was 670.05 million yuan (RM403.3mil) and the amount recognised under IFRS 16 for those right-of-use assets was 393.9 million yuan (RM237.1mil).


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