Parkson Retail Asia announced that, according to the shareholders’ approval, the corporation will sell Parkson TD Plaza for US $ 10 million to Thuy Duong Construction and Trading Joint Stock Company (based in Hai Phong).
Parkson TD Plaza in Hai Phong. (Image: Zing News)
Based on the unaudited book value for the deal, Parkson expects a loss of about $ 500,000 to sell Parkson TD Plaza.
Thuy Duong Construction and Trading Joint Stock Company was established in 2007 with a registered capital of VND 180 billion. The company’s main business is real estate, land ownership, and housing construction.
Under the agreement, Thuy Duong Construction and Trading Joint Stock Company will have to transfer USD 50,000 deposit to the account appointed by Parkson within three days of signing the property transfer contract. Parkson refunded the deposit in three days after Thuy Duong Construction and Trading Joint Stock Company paid in full, or the contract terminated.
After the agreement to sell Parkson TD Plaza in Hai Phong, Parkson has only one shopping center in Ho Chi Minh City, Parkson Saigon Tourist Plaza (District 1), Inside Retail Asia said.
The sale of Parkson TD Plaza will help strengthen cash flow and reduce debt liability for Parkson. The Group is also able to be more flexible in re-deploying resources for working capital goals.
“After completing the sale of Parkson TD Plaza in Hai Phong, Parkson Vietnam will continue to operate and manage the facility in Ho Chi Minh City but stop selling department stores under the Parkson brand at this mall. “, announced by Parkson.
Based on the announcement, Parkson will no longer operate the Parkson Saigon Tourist shopping center itself, but will convert most of the building into a space for retailers. Through it, Parkson seems to want to become a real estate management business.
Currently, Uniqlo Corporation (Japan) is renting most of the area of Parkson Saigon Tourist Plaza to operate its first flagship store in Vietnam.
The opening ceremony of Uniqlo’s first store in Vietnam last December. (Photo: Yen Khe)
In addition, Muji – another Japanese retail brand, also opened its first pop-up store at the mall on July 31.
The new strategy of Parkson Vietnam is “to turn Parkson Saigon Tourist Plaza into a destination that integrates all types of services from shopping, dining and entertainment”. Parkson Saigon Tourist Plaza has been renovating since April last year.
Parkson Retail Asia entered Vietnam market in June 2005 with the Parkson Saigon Tourist Plaza at the “golden land” of District 1. By the peak period, Parkson owned 10 shopping centers in all locations. Prime all over the country.
At that time, the business center operator from Malaysia was confident of the long-term success in Vietnam because Parkson was the first foreign brand in the field of general department store business to penetrate the Vietnamese market.
However, after years of unprofitable business, Parkson in turn closed shopping centers. In October 2018, Parkson announced the closure of the fifth shopping center in Vietnam – Parkson Cantavil (District 2). Subsequently, the group continued to close three more locations before announcing the sale of Parkson TD Plaza this week.