Parkson Holdings Extends Store Lease in China
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Parkson Holdings’ Beijing operation Parkson Retail Development (PRD) has extended a department store lease in the city until the end of 2021.
PRD’s Hong Kong-based owner PRGL announced in a stock exchange filing in Hong Kong the firm has signed a new lease agreement for a 189sqm area from the China National Arts and Crafts Group in Beijing’s Fuxingmen. It has agreed to pay a quarterly rental of RMB2.5 million (US$361,800).
The group has been conducting retail activities at the site for 20 years and this lease follows renewals of seven other leases in the same building back in February. In total, Parkson leases 23,887sqm in other areas of the museum from the same landlord for terms extending as far as the end of November 2028.
A statement from PRGL said the operation has brought stable revenue in the past, and that the new lease brings continuity to the group’s retail efforts in a location familiar to its long-term customers.
Questions & Answers
Q.What is the new lease agreement for and what is its duration?
What is the new lease agreement for and what is its duration?
The new agreement is for a 189sqm area within the Beijing Fuxingmen location. The lease extends the operation there until the end of 2021, providing continuity for Parkson's retail activities at the site.
Q.How much will Parkson pay in rent for this new lease?
How much will Parkson pay in rent for this new lease?
Parkson has agreed to pay a quarterly rental of RMB2.5 million for the 189sqm area. This amounts to approximately US$361,800 every three months for their continued operation at the Fuxingmen site.
Q.Does Parkson lease other areas in the same building, and for how long?
Does Parkson lease other areas in the same building, and for how long?
Yes, Parkson leases an additional 23,887sqm in other parts of the building from the same landlord. These existing leases were renewed in February and extend as far as the end of November 2028.
Q.Who owns Parkson Retail Development, and who is the landlord for this property?
Who owns Parkson Retail Development, and who is the landlord for this property?
Parkson Retail Development is owned by PRGL, a Hong Kong-based entity. The landlord for the 189sqm area, and presumably the larger 23,887sqm space, is the China National Arts and Crafts Group.