PETALING JAYA: Parkson Retail Group Ltd (PRGL), the 54.97%-owned Hong Kong-listed subsidiary of Parkson Holdings Bhd
, has renewed the tenancy of its Hefei City retail space in China’s Anhui province, under a six-year supplemental agreement valued at about RM91.2mil.
In a filing with Bursa Malaysia, Parkson said the agreement was entered into by Hefei Parkson Xiaoyao Plaza Co Ltd, an indirect wholly owned subsidiary of PRGL, with landlord Hefei Xingtai Equity Investment Management Co Ltd.
The renewed lease covers retail premises at Xiaoyao Plaza comprising parts of the north and south buildings, with a total gross floor area of 45,037sq m.
The tenancy will run for six years from March 1, 2028 to Feb 28, 2034, extending a retail presence in the Hefei property that has been in place since 2001.
Under the terms of the agreement, Hefei Parkson will pay a fixed annual rent of 35.67 million yuan or about RM20.7mil, inclusive of tax, alongside an incremental revenue-sharing component based on annual gross revenue.
No revenue share is payable if annual revenue is 60 million yuan or below.
“For the portion of annual gross revenue exceeding 60 million yuan to 70 million yuan, Hefei Xingtai is entitled to 40% of such portion,” the agreement said.
