Parkson’s HK-listed indirect unit wins tenancy bid for 20-year lease in Sichuan province

• Parkson said Mianyang Fulin Parkson Plaza Co Ltd received a successful bidding notice on Tuesday (Oct 25) confirming that it had won the bid in the tender for tenancy of part of LG1, and levels one to four of buildings on the east side of Chuan Ye Da Dao, Mianyang Science and Technology City New District.

KUALA LUMPUR (Oct 26): An indirect unit of Parkson Holdings Bhd’s 54.97%-owned Hong Kong-listed subsidiary Parkson Retail Group Ltd has won a tender for a 20-year tenancy in Mianyang, a city within the Sichuan province of China.

In a bourse filing, Parkson said Mianyang Fulin Parkson Plaza Co Ltd received a successful bidding notice on Tuesday (Oct 25) confirming that it had won the bid in the tender for tenancy of part of LG1, and levels one to four of buildings on the east side of Chuan Ye Da Dao, Mianyang Science and Technology City New District.

Mianyang Fulin’s winning bid for the space measuring 60,000 sq m was about 21.6 million yuan (RM14.01 million).

“The board considers that the tenancy of the property plays an important role in the development of the group’s business in the Mianyang city, and is in line with the group’s development strategy in the Sichuan province.

“The property is tailor-made for the group, located in the new district of the Mianyang city established in 2020, and is being developed by the local government for an important business circle. The board believes that the tenancy will have a positive impact on the future development of the company,” said Parkson.

According to the group, it will enter into a cooperation agreement with landlord Mianyang New Investment Industrial Co Ltd within 45 business days of receving the notice, and negotiate and finalise the terms of the tenancy via a supplemental agreement within another 45 business days from the date of the cooperation agreement, before entering into the tenancy agreement within five days of the landlord obtaining the construction project planning permit for the property.

At the time of writing, Parkson was unchanged at 12 sen, with a market capitalisation of RM132.57 million.