Mr. Tran Le Nguyen, CEO of KIDO, said that he has taken over the premises that Parkson rented at Hung Vuong Plaza and is renovating it to give it a "new look".
Parkson Hung Vuong Plaza has been operated by Parkson Vietnam since 2007 and has been continuously losing money. At the end of April this year, Parkson Retail Asia (PRA) announced that its branch, Parkson Vietnam Co Ltd, had filed for voluntary bankruptcy with the Ho Chi Minh City court.
Therefore, Parkson Hung Vuong - one of the largest centers initially rented by this enterprise - had to return it to Hung Vuong Joint Stock Company (Mr. Tran Le Nguyen - CEO of KIDO holds 44% of shares).
Parkson Hung Vuong Plaza when Parkson Vietnam takes over. Photo: Ngoc Anh
Sharing with VnExpress , KIDO CEO Tran Le Nguyen said that Parkson Vietnam owed a year's rent. When the company saw that it was difficult for the business to pay the debt, the company decided to reclaim the premises and extend the debt.
Instead of finding another tenant, Hung Vuong is renovating this place with a new look. "We will reopen this center in August this year. This will be the second Van Hanh Mall with a modern business style and high revenue," said Mr. Nguyen.
Taking over when Parkson had been losing money for many years, Mr. Nguyen said he was "not afraid of failure". He cited Van Hanh Mall, which started operating in 2018 and went through 3 years of the pandemic but still operated well, with high revenue and 100% occupancy rate.
"When taking over Hung Vuong Plaza, we are confident in breathing new life into the new shopping mall business model despite the difficult economic context," said Mr. Nguyen.
New look of Hung Vuong Plaza after its new "makeover". Photo: Ngoc Anh
The CEO of KIDO Group also said that he is completing procedures to increase his ownership ratio at Hung Vuong Plaza to 76%. Of which, KIDO Group will buy 32% of shares from Vinacapital. The agreement between the two parties is almost complete, in August KIDO will have full control over Hung Vuong Plaza.
In addition to being built according to the model of Van Hanh Mall, this new center will have entrances from 4 facades, instead of just 2 doors as before. The logo of the new center is completely similar to Van Hanh Mall and is called Hung Vuong Plaza.
Although not yet opened, according to KIDO, the signed lease rate is over 80%. It is expected that by the opening day, the occupancy rate will be 90% with over 100 famous international and domestic brands. The rental price ranges from 30 USD to 95 USD per square meter per month.
KIDO is a food business group with famous products such as cooking oil, ice cream, cakes, and beverages. Its subsidiaries also invest in shopping centers including Van Hanh Mall and Hung Vuong Plaza.
KIDO's report said that while the economy is in recession and people are tightening their spending, in the first 4 months of the year, Van Hanh Mall still reached nearly 1 million visitors per month, double that of 2019. With favorable business operations, Van Hanh Mall expects revenue of over 400 billion this year.
Hung Vuong Plaza is expected to have a revenue of 250 billion VND this year. This center has 7 floors, commercial floor area of 30,000 m2, and rental area of 25,000 m2.
Thi Ha
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