KUALA LUMPUR: Parkson Holdings Bhd
’s 54.97%-owned subsidiary Parkson Retail Group Ltd (PRGL) has entered into a 20-year lease agreement for a property in Mianyang City, Sichuan Province, China.
In a filing with Bursa Malaysia, Parkson Holdings said PRGL’s indirect wholly owned subsidiary, Mianyang Fulin Parkson Plaza Co Ltd, entered into the agreement with Mianyang Yuancheng Integrated Development Group Co Ltd on Sept 28.
The lease covers about 38,511 sq m of space spanning the basement, first to fourth floors and mezzanine of Zijing Plaza in Mianyang City.
The lease will commence from the property’s actual opening date, which is expected to be July 1, 2027 and no later than Oct 1, 2027.
Parkson plans to operate a shopping centre at the property under the Parkson brand, with retail, dining, entertainment and other commercial offerings.
Under IFRS 16, PRGL will recognise the property as a right-of-use asset valued at about RMB60.9mil, equivalent to approximately RM37.1mil.
The transaction constitutes an acquisition of an asset under Hong Kong listing rules and is classified as a discloseable transaction as the highest applicable percentage ratio exceeds 5% but is below 25%. It does not require shareholders’ approval.
PRGL said it has operated in Mianyang City for almost 30 years and currently runs one shopping mall, two department stores and two supermarkets there.
It plans to introduce a city outlet format at the new property, which is located in what the group described as a prime commercial district.
Parkson Holdings said the acquisition of the right-of-use asset would not have a material impact on the group’s earnings for the financial year ending Dec 31, 2026 or its net assets.
