Parkson pulls out of property development JV in China due to absence of suitable land

Parkson pulls out of property development JV in China due to absence of suitable land
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KUALA LUMPUR (Sept 6): Parkson Holdings Bhd said its Hong Kong-listed subsidiary Parkson Retail Group Ltd (PRGL) is withdrawing from its proposed joint venture (JV) to seek land plots in China's Jiaxing city for potential property development projects.

PRGL, through wholly-owned Shanghai Shengrui Commercial Management Co Ltd, entered into an agreement with Hongxiang Real Estate Co Ltd to form the JV — Jiaxing Gold Lion Real Estate Development Co Ltd — in October 2020.

PRGL withdrew from the JV as the firm could not identify suitable plots of land to be used for commercial and retail purposes, Parkson said in a filing with Bursa Malaysia.

"The withdrawal does not have a material impact on the earnings of Parkson for the financial period ending Dec 31, 2021 and the net assets of Parkson based on the audited consolidated statement of financial position of the company as at June 30, 2020," Parkson said.

Shares of Parkson rose half a sen or 2.13% to close at 24 sen today, valuing the retailer at RM257.07 million.

S Kanagaraju