Lifestyle International (HK) to Build Shopping Center in Suzhou
Lifestyle International Holdings Ltd., a listed company and owner of Sogo Department Store in Hong Kong, revealed on last Thursday (Jan. 25) that the company had reached agreement with a real estate developer of Suzhou on joint development and operation of a shopping center in Suzhou Industrial Park
Lifestyle International will invest 179.9 million RMB into joint venture with SIP Urban Development Co., according the agreement.
The joint venture will be named Suzhou Lifestyle Plaza Co., Ltd. with 390 million RMB registered capital, of which Lifestyle International will hold 46.1%.
The agreement also specifies that one year after the establishment of the joint venture, Lifestyle International will obtain all of the shares.
As the full owner of the joint venture, Lifestyle International will be able to operate the department stores under its trademark with more flexibility and efficiency, and to implement plans of market expansion in the Mainland China.
The current investment project is part of the overall plan of department store business development in China.
Last year, the company was approved to develop a commercial building complex in Shenyang, Northeast China, which will contain a development store of the Sogo chain.
Apart from the two Sogo department stores in Hong Kong, Lifestyle International holds 65% shares of Shanghai Jiuguang Department Store.
Thomas Lau, Managing Director of Lifestyle International, said in last August that his company was in the process of negotiation on the acquisition of all the shares of the domestic partners, while making preparations for business expansion in Chinese Mainland, chiefly in Grade-I cities, with possibilities in Grade-II and Grade-III cities.
Jan. 25, 2007