Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (March 19): Parkson Holdings Bhd announced today that its indirect Chinese subsidiary has successfully bid for part of a property in Wuxi, China, that the unit is currently renting, for RMB200 million (RM124 million) cash.

Parkson's Hong Kong-listed 54.97% subsidiary Parkson Retail Group Ltd (PRGL) said its 60%-owned Wuxi Sanyang Parkson Plaza Co Ltd (WSPP) succeeded in the judicial auction in bidding for the property from Sanyang Yinhui Properties Development Company Ltd (SYPD), which has been declared bankrupt.

"The minimum bidding price was RMB189.6 million," said PRGL in a filing to the Hong Kong Stock Exchange. The property — which is the first floor to the fifth floor of the building located in the Liangxi District, with a total gross area of 11,190.87 sq m — was valued at RMB236.99 million, according to a valuation report dated Aug 29, 2017.

PRGL expects full payment of the acquisition to be satisfied by March 25. However, completion of the acquisition is still subject to the final confirmation of the Wuxi Intermediate Court, it added.

The property is currently being occupied by WSPP and used as department stores since 2008, said PRGL.

"The acquisition will provide flexibility to the group's future business development or expansion and mitigate the risks of the rise in rental expenses in future to the group," said PRGL.

Parkson shares rose half a sen to close at 45 sen today, giving the department store operator a market capitalisation of RM490.92 million.

 

      Print
      Text Size
      Share