Singapore-based Parkson Retail Asia Ltd has agreed to sell the Parkson TD Plaza Shopping Center in Hai Phong City, a continuation of the company’s closure of its developments in Vietnam. The company said in a statement that it is currently seeking the permission of shareholders in the venture to sell the mall to a local company for $10 million USD.
The Parkson TD Plaza Shopping Center in Hai Phong is a 23,000 square meter mall located in the commercial and residential building TD Plaza in the Ngo Quyen District of Hai Phong City. It is one of Parkson Retail’s last four malls in Vietnam.
Parkson Retail Asia said that Vietnam’s Thuy Duong Construction and Trading JSC., which was established in 2007 is set to purchase the building. Thuy Duong has business interests in real estate trading and construction of residential buildings and the purchase of TD Plaza fits in naturally with its current operations.
Parkson Retail said that the agreed price of $10 million USD is $500,000 lower than the mall’s value, but that the immediate sale of the development will strengthen its cash flow and reduce liabilities, and therefore the company had agreed to the lower price.
The sale of the Hai Phong development continues Parkson’s divesture from Vietnam. The company entered Vietnam in 2005 and had opened nine malls in the country by 2014. However, the company never was able to turn a profit on its Vietnam operations and one year later, in 2015 began closing outlets. To date, it had closed three outlets in HCMC and two in Hanoi.
After the sale of the Hai Phong development goes through, the Singapore-based company will operate only three malls in Vietnam, two in Ho Chi Minh City and one in Da Nang City.
This year continues the company’s losses, and the company reported a loss of $8.5 million USD in Vietnam in the first three quarters of the 2020 financial year. According to Parkson’s Retail executive, the loss in Vietnam was the biggest among its markets that reported losses, including Cambodia, Indonesia and Malaysia.