KUALA LUMPUR: 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 RMB185mil, 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.

Under IFRS 16, 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 as the applicable percentage ratio exceeds 25% but is below 100%.

Shareholders holding about 54.97% of PRGL have given their written approval in lieu of a general meeting.

Parkson Holdings said the acquisition of the right-of-use asset is not expected to have a material impact on the group’s earnings for the financial year ending Dec 31, 2026, or its net assets based on its audited financial position as at Dec 31, 2025.