Beijing Wangfujing To Lend 99M Yuan To Subsidiary


February 17 -- Beijing Wangfujing Department Store Group (600859) plans to extend a 99 million yuan interest-free three-year loan to subsidiary, Foshan Xiongsheng Wangfu Commerial Mall Investment, for the latter to build a shopping center in Foshan, Guangdong province, reports, citing a company filing.

Following the completion of construction, Beijing Wangfujing will be in charge of operating the shopping center.

Foshan Xiongsheng Wangfu Commerial Mall Investment was established with a registered capital of 50 million yuan. It is a joint venture between Wangfujing Department Store Department, Guangzhou Xiongsheng Hongjing Investment, and Foshan Lanshi Real Estate Development, with shareholdings of 20 percent, 20 percent and 60 percent, respectively.

The three shareholders will contribute a total of 495 million yuan for the building of the shopping center, in accordance with their  shareholdings.

The shopping center is located in Focheng district, with a land area of 42,400 square meters and construction area of 90,000 square meters.

The loan will not have a large impact on its assets and profitability over the next three years, according to Beijing Wangfujing.

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