Parkson’s HK-listed unit inks 20-year tenancy agreement in China

• The agreement is in respect of a tenancy of a lower ground floor, as well as first to fourth floors of a building with a total gross area of 28,585.47 sq metres.

KUALA LUMPUR (Nov 1): Parkson Holdings Bhd said its 54.97%-owned Hong Kong-listed subsidiary Parkson Retail Group Ltd (PRGL) has entered into a 20-year tenancy agreement in respect of a property in Nanchang in China’s Jiangxi province.

In a filing with Bursa Malaysia, Parkson said the agreement was signed on Monday (Oct 31) by PRGL’s indirect wholly-owned subsidiary Jiangxi Parkson Shopping Centre Management Co Ltd, and property owner Nanchang Hui Xin Industrial Co Ltd.

The agreement is in respect of a tenancy of a lower ground floor, as well as first to fourth floors of a building with a total gross area of 28,585.47 sq metres.

The fixed monthly rental is 25 yuan (RM16) per sq metre (inclusive of tax and property management fee) and is subject to a 5% increment every three years during the term.

Parkson said the tenant would be entitled to rent-free periods for each first- to four months of the first three years within the term, totalling 12 months.