2010 Dec 09
AEON Stores (Hong Kong)

AEON STORES ANNOUNCES ACQUISITION OF PROPERTY SETS UP NEW HEADQUARTERS AND CENTRALISED DISTRIBUTION AND PROCESSING FACILITIES　TARGETS TO OPEN SIXTH GENERAL MERCHANDISE STORE IN HONG KONG IN 2011

(HONG KONG, 8 December 2010) – AEON Stores (Hong Kong) Co., Limited (“AEON Stores” or the “Group”) (Stock code: 984) announced an acquisition of a property in Hong Kong at a consideration of HK$310 million, financed by internal resources. The Group is planning to convert the property to its new headquarters and centralised distribution and processing facilities.

Located in Kung Yip Street, Kwai Chung, New Territories, Hong Kong, the property to be acquired comprises 15 storeys and is permitted for industrial, godown and ancillary office use. Based on the valuations made by two independent valuers, the property is valued at approximately HK$330 million to HK$340 million. The whole building is currently subject to an existing tenancy agreement, which will expire on 31 March 2013 at a monthly rental of approximately HK$1.6 million, representing a yield of above 6% per annum.

Mr. Lam Man Tin, Managing Director of AEON Stores, said, “To cope with the Group’s rapid business expansion in Hong Kong and minimise the leasing expenses in the long run, we decided to acquire a property to set up our new headquarters and centralised distribution and processing facilities. It may also serve as a food processing facility, which will help ensure the quality of our food production operations. Through relocation of headquarters and reorganisation of current logistics functions, we believe we will not only achieve overall cost reduction but also efficiency enhancement. We are confident that this strategic movement will be beneficial to the Group’s long-term business development, contributing to higher returns to our shareholders.”

Apart from the property acquisition, AEON Stores is going to open the sixth General Merchandise Store (“GMS”) in Hong Kong. Located in Aqua Marine, 8 Sham Shing Road, West Kowloon, this three-storey GMS will occupy a floor area of 240,000 sq. ft. and become the second largest GMS in the territory. Involving a total investment of approximately HK$100 million, the new store is expected to start operation by the end of 2011.

Mr. Lam added, “Over the years, we have been dedicated in exploring suitable sites to expand the network of the popular GMS, and now we are pleased to announce that we have confirmed a favourable location for a new store in a densely populated area in West Kowloon. By offering diversified quality merchandise and one-stop shopping experience, we expect this GMS to attract frequent visits of residents and working population in the district.”

Surrounded by a number of residential properties, the new GMS is only a 10-minute walk from the Lai Chi Kok MTR Station and conveniently located to serve over 113,000 households and around 328,000 residents within a two-kilometre distance. There are also 128 parking spaces available in Aqua Marine promising convenient access to customers in the district and the neighbouring areas.

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About AEON Stores
AEON Stores was established in Hong Kong in 1985 and listed on the Hong Kong Stock Exchange in 1994. The Group is mainly engaged in the operation of general merchandise stores (GMS). Currently, it operates 10 GMS, 2 independent supermarkets, 33 independent Living PLAZA by AEON, 30 independent Daiso Japan, 1 independent Bento Express by AEON and 4 Mono Mono and 3 KOMEDA'S Coffee in densely populated districts in Hong Kong. It also operates 21 GMS and 15 independent supermarkets in Guangdong Province, the PRC.

For more information：
AEON Stores (Hong Kong) Co., Limited
Corporate Communication Department
Tel.：（852）2165 0777
Email：aeonpr@aeonstores.com.hk