Parkson Retail Group Limited (3368) has issued an announcement regarding a major transaction involving the renewal of a tenancy in Chengdu, Sichuan Province, and a related supplemental agreement. The transaction has been approved in writing by holders representing over 50% of the company's voting rights, removing the need for a general meeting.

The tenancy involves Parkson Retail’s indirect wholly-owned subsidiary, Sichuan Shishang Parkson Retail Development Co., Ltd., leasing parts of a commercial property in Chengdu. The lease covers 28,610.39 square meters from the building’s basement through Level 5, plus an additional 152.93 square meters on Level 1. The new term spans from October 1, 2027, to September 30, 2047.

Under the new agreements, rent for most of the space consists of a guaranteed minimum linked to modest annual increments and a potential turnover-based portion if store sales exceed specified benchmarks. The smaller 152.93-square-meter unit carries a fixed annual rent. The total payment is expected to be financed by operating revenues and internal resources. According to the announcement, these agreements ensure the continuity of Parkson Retail’s established presence in Chengdu’s core business district and avoid relocation costs.

The transaction is treated as an acquisition of a right-of-use asset for accounting purposes and is classified as a major transaction under the Listing Rules. Detailed information, including terms of the lease, expected financial impact, and a valuation report on the property, is provided in the circular distributed by Parkson Retail Group Limited (3368).