Parkson’s unit secures two major lease agreements in China

• In a filing with Bursa Malaysia on Wednesday, the company said PRGL’s indirect subsidiary, Shanghai Nine Sea Parkson Plaza Co, Ltd, has secured a 15-year tenancy for a property on Huaihai Middle Road in Shanghai.

KUALA LUMPUR (Nov 6): Parkson Holdings Bhd’s (KL:PARKSON) subsidiary, Parkson Retail Group Ltd (PRGL), has secured two major lease agreements in Shanghai and Nanning, China, with a total combined value of approximately RM358.8 million.

In a filing with Bursa Malaysia on Wednesday, the company said PRGL’s indirect subsidiary, Shanghai Nine Sea Parkson Plaza Co, Ltd, has secured a 15-year tenancy for a property on Huaihai Middle Road in Shanghai.

It said the lease, agreed with Shanghai Nine Sea Industry Co, Ltd, will commence on Nov 30, 2024 until Nov 29, 2039, with a value of RM185.3 million.

Meanwhile, in Nanning, PRGL’s unit, Nanning Brilliant Parkson Commercial Co, Ltd, has renewed its tenancy agreement with Nanning Holding Company Ltd.

This 17-year lease will begin on Jan 1, 2025, and conclude on Nov 27, 2042, valued at approximately RM173.5 million, it said.

The filing said the agreements will not have a material impact on the earnings of the group for the financial year ending Dec 31, 2024 (FY2024), and the net assets of the group, based on the audited consolidated statement of financial position of the company as at Dec 31, 2023.

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