Singapore-listed Parkson Retail Group further expands in China by acquiring a shopping mall in Qingdao.

Parkson, which operates department stores, will buy Qingdao Shopping Mall for 1.57 billion yuan (US$251.9 million) from its owner Shanghai Industrial Qingdao Development Company.

The Qingdao Shopping Mall, located at Laoshan District, has a total gross floor area of 216,000 sqm, of which 131,000 sqm is for retail use and an estimated 2000 car parks. It spans five floors above ground and three below.

The mall is part of a fully integrated commercial development project known as Beer City Project which spans a total of 227,674 sqm.

Parkson said the mall will be used partially for the operation of department store, with additional space to be leased out to the mall tenants, which include the anchor tenant stores, standalone stores, entertainment outlets and the amenities services outlets.

It said Qingdao has been growing at an annual rate of more than 16 per cent for the past five years, and sits now at 223.3 billion yuan.

Qingdao Shopping Mall will join Parkson’s one department store in Qingdao which was opened in 1998.

Parkson has a total of 53 department stores in 35 cities in China.

“The acquisition would serve to maximise the sales and profit potential of our operation in Qingdao to enhance the group’s growth and profitability,” said Parkson in a statement.

GB