Department store operator Parkson Retail will sell one of loss-making units in the Chaoyang district of Beijing. The sale is expected to bring in CNY1.67bn ($250m) for the group., sending its share price surging. Net proceeds from the deal will be used for new business investment opportunities, Parkson said, and is expecting to book a CNY900m one-off gain. The commercial property is being used as a Parkson department store, with seven levels above ground for retail and three levels below ground for a car park. The sale is pending shareholders approval, but analysts expect it to go through as Beijing real estate prices have risen to new heights and the sale would bring a boost to Parkson which has been in the red since 2010.

Illustration 'Parkson to sell Beijing Department Store (september 2016)' (png - 0.48Mo)