PETALING JAYA: Parkson Holdings Bhd’s 54.97%-owned subsidiary Parkson Retail Group Ltd (PRGL) has renewed the tenancy of its retail property in Nanchang, China, for 15 years in a transaction valued at about 185 million yuan, or about RM111mil.

In a filing with Bursa Malaysia, Parkson said PRGL’s indirect wholly-owned subsidiary, Jiangxi Parkson Retail Co Ltd, entered into the renewal agreement with Jiangxi Kaimei Development Co Ltd on Sept 9.

The tenancy covers a basement level and four above-ground floors at Zhongshan Road in Nanchang, Jiangxi province, and will run from Jan 1, 2027 to Dec 31, 2041.

PRGL will recognise the property as a right-of-use asset. The RM111mil consideration is based on the present value of rental payments under the renewed tenancy.

The transaction is classified as a major transaction for PRGL under Hong Kong listing rules.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.