AEONGD, a non-wholly-owned subsidiary of the company (as lessee), announced on October 11, 2023, 00984.HK.With the owner (as the owner)Conditionally sign an offer to surrender part of the leased area under the existing tenancy agreement (effective from May 6, 2024)And extend the lease of the property from 7 May 2024 to 31 October 2039. Under the existing tenancy agreement, AEONGD leased the existing property to the landlord from 25 September 2009 to conduct its retail business.
In accordance with HKFRS 16 lease, AEONGD (as lessee) entered into an offer to terminate the recognition of the right-to-use assets arising from part of the leased area surrendered and to recognize additional right-to-use assets as a result of the extension of the lease term. Therefore, under the listing rules, the making of an offer will be regarded as the sale and acquisition of assets by the group. The value of the right-to-use assets terminated and recognised by the Group for the sale and acquisition in accordance with the offer is approximately RMB11.6 million and approximately RMB207.7 million respectively.
Existing property: Tianhuicheng Plaza, East Railway Station, Guangzhou City, Guangdong Province, China, with a total leased area of about 26649.8 square meters.