Beijing Hualian Department Store Company has published a report which says that the company will issue CNY830 million in additional shares to its shareholder Beijing Hualian Group Investment Holding Company to acquire the group's five commercial real estate projects in Beijing and Jiangsu.
This means Hualian Department Store will change from being a department store retailer to a pure commercial real estate company and the company will focus on the development of community shopping centers in Beijing.
To complete the acquisition, Hualian Department Store will issue 240 million shares to Hualian Group, which will make Hualian Group the largest shareholder of Hualian Department Store with a 59.5% stake.
Hualian Department Store said that the company planned to open more than three shopping centers each year and both department stores and supermarkets for Hualian Group would be key projects.
According to industry experts, Hualian Group aims to clarify the merger of the businesses of its affiliate companies through this transaction. At present, Hualian Group is engaged in department store, supermarket, and commercial real estate businesses. Of these Hualian Group focuses on the department store business, Hualian Hypermarket focuses on the supermarket business, and Hualian Department Store focuses on the commercial real estate and shopping center operation.