Parkson unit signs 20-year lease for Mianyang shopping centre

Parkson Holdings Bhd’s Hong Kong-listed subsidiary, Parkson Retail Group Ltd, has signed a 20-year lease for about 38,511 sq m at Zijing Plaza in Mianyang, China. The lease, starting from July 2027, will see the group operate a shopping centre under the Parkson name. Rent is the higher of a guarante

PETALING JAYA — Parkson Holdings Bhd’s Hong Kong-listed subsidiary, Parkson Retail Group Ltd (PRGL), has signed a 20-year lease for space at Zijing Plaza in Mianyang, China, where it plans to operate a shopping centre under the Parkson name.

In a Bursa Malaysia filing on Monday (Sept 28), Parkson Holdings said PRGL’s indirect wholly owned subsidiary Mianyang Fulin Parkson Plaza Co Ltd had entered into the lease agreement with Mianyang Yuancheng Integrated Development Group Co Ltd. The lease covers about 38,511 sq m (414,529 sq ft) across parts of the basement, first to fourth floors and mezzanine of Zijing Plaza at No. 89 Youxian Road in Sichuan province.

The lease term will begin on the property’s actual opening date, expected to be July 1, 2027 and no later than Oct 1, 2027. PRGL said it plans to introduce a city outlet format at the site. The group currently operates a shopping mall, two department stores and two supermarkets in Mianyang.

Rent will be the higher of a guaranteed amount and a percentage of sales or sublease income. The guaranteed rate starts at RMB13 per sq m per month, with a 50% reduction for the first three lease years. The tenant may sublet part of the premises.

Under lease accounting rules, PRGL expects to recognise a right-of-use asset of about RMB60.9 million (RM37.1 million). This represents the accounting value of its right to use the property, rather than a property purchase price.

The lease is classified as a discloseable transaction under Hong Kong listing rules. It requires an announcement but does not require a circular or shareholders’ approval. Parkson Holdings, which owns 54.97% of PRGL, said the agreement would have no material impact on its earnings for the financial year ending Dec 31, 2026 or its net assets based on its audited position at end-2025.

On Sept 9, PRGL separately renewed the tenancy of its Nanchang retail premises for 15 years, from Jan 1, 2027 to Dec 31, 2041. That renewal has an estimated right-of-use asset value of RMB185 million (RM111 million).