Parkson Holdings said its Hong Kong-listed subsidiary has entered into a major tenancy renewal agreement involving a property in Shanghai valued at approximately RMB374.5 million (RM217.2 million).
The company said Shanghai Hongqiao Parkson Development Co Ltd, an indirect wholly owned subsidiary of PRGL, signed the tenancy renewal agreement on 8 May 2026 with Shanghai Changning Real Estate Management Co Ltd.
The agreement covers the renewal of the Shanghai Hongqiao tenancy for a period from 1 July 2026 until 31 December 2036.
Under the International Financial Reporting Standard 16 on leases, PRGL will recognise the property as a right-of-use asset. As a result, the transaction is treated as an acquisition of assets under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Parkson said the consideration for the acquisition was based on the present value of rental payments under the tenancy agreement.
The company added that the transaction qualifies as a “very substantial acquisition” for PRGL under Hong Kong listing rules, as the highest applicable percentage ratio exceeds 100%.
As such, PRGL will convene an extraordinary general meeting to seek shareholder approval for the tenancy renewal and related transactions.
Despite the size of the transaction, Parkson Holdings said the acquisition is not expected to have a material impact on the earnings or net assets of the group for the financial year ending 31 December 2026.
