KUALA LUMPUR, Sept 6 — Parkson Holdings Bhd’s subsidiary, Parkson Retail Group Ltd (PRGL), is withdrawing from its proposed joint venture (JV) entered last year with Hongxiang Real Estate Co Ltd to seek land plots in Jiaxing city, China, for potential property development projects.

In a filing with Bursa Malaysia today, Parkson said that the Hong Kong-listed PRGL, through its wholly-owned unit, Shanghai Shengrui Commercial Management Co Ltd, had entered into an agreement with Hongxiang Real Estate to form the JV, Jiaxing Gold Lion Real Estate Development Co Ltd, in October 2020.

It said PRGL withdrew from the JV as the firm could not identify suitable plots of land to be used for commercial and retail purposes.

"The withdrawal does not have a material impact on the earnings of Parkson for the financial period ending Dec 31, 2021 and the net assets of Parkson based on the audited consolidated statement of financial position of the company as at June 30, 2020.

"Pursuant to the withdrawal framework agreement, the parties agreed that the outstanding shareholder’s loan of RMB330.75 million (RM1=RMB1.56) shall be repaid by Jiaxing Gold Lion Real Estate to Jiaxing Lion Retail Management on or before Oct 31, 2021,” it added. — Bernama