KUALA LUMPUR: Parkson Holdings Bhd’s 52.1%-owned subsidiary, Parkson Retail Group Ltd (PRGL) is acquiring the Qingdao Shopping Mall in China from Shanghai Industrial Qingdao Development Co Ltd for 1.42 billion yuan (RM800 million) cash.

The acquisition will be funded via internal funds.

In a filing with Bursa Malaysia yesterday, Parkson Holdings said PRGL’s wholly-owned unit Qingdao Lion Plaza Retail Management Co Ltd had signed a sales and purchase agreement with Shanghai Industrial Qingdao Development Co for the proposed acquisition.

Under the deal, Shanghai Industrial Qingdao Development  will continue to build and deliver the completed Qingdao Shopping Mall to Parkson Holdings. 

The Qingdao Shopping Mall is currently under construction and is expected to be completed by July 31 next year.

The mall, located at Laoshan District of Qingdao City, is part of a fully integrated commercial development project known as Beer City Project undertaken by Shanghai Industrial Qingdao Development, which sits on 227,674.7 sq m of vacant land.

The site area apportioned to the Qingdao Shopping Mall is 45,714 sq m, with a total planned gross floor area of 216,000 sq m, of which 131,000 sq m area is for retail use and the balance of 85,000 sq m is for ancillary and an estimated 2,000 car park lots. The mall consists of five levels above ground and three basement floors.

The land use rights of the Qingdao Shopping Mall is for a total period of 40 years expiring on Dec 5, 2050, said Parkson Holdings.

Qingdao Shopping Mall will join Parkson’s existing department store in Qingdao, which was opened in 1998. The retail group has department stores in 26 major cities in 18 provinces across China.

This article first appeared in The Edge Financial Daily, on December 30, 2014.