Parkson Retail Group Ltd has renewed the tenancy for its Shanghai Hongqiao property in China in a deal involving a right-of-use asset valued at about RMB374.5 million.
In a stock exchange filing, the group said its indirect wholly-owned subsidiary, Shanghai Hongqiao Parkson Development Co Ltd, signed the renewal agreement with Shanghai Changning Real Estate Management Co Ltd.
The renewed tenancy will run from July 1, 2026 to Dec 31, 2036, covering about 49,480 sq m of retail space in Shanghai’s Changning district.
Under the agreement, monthly rent will be about RMB5.19 million for the first five years, rising to RMB5.34 million for the remaining term.
Parkson said the transaction is classified as a very substantial acquisition under Hong Kong listing rules due to the size of the recognised right-of-use asset under IFRS 16.
The company will seek shareholder approval for the deal at an extraordinary general meeting.
Parkson said the Shanghai Hongqiao outlet remains strategically important due to its location in a mature commercial area and its “Urban Outlets” retail concept featuring a Korean Wave theme.
The group added that the fixed-rent structure and planned upgrades are expected to improve cost visibility, support refurbishment efforts and strengthen the store’s competitiveness and customer experience.
