SOGO Hong Kong Co and Junefield Real Estate Development Co have signed a US$60 million joint-venture agreement to open the biggest department store in China.
The Beijing Junefield Sogo Department Store is scheduled to open in 1997 and will occupy seven levels of Junefield Plaza, with a gross area of 1.3 million square feet.
Beijing Junefield, 80 per cent owned by Junefield (Holdings) of Hong Kong, is involved in redeveloping Xuanwu district.
Beijing Junefield Real Estate Development Co president Zhou Jian said: 'There is a need for a large-scale department store as part of the district and the Junefield Plaza is a major project of the plan.' At the signing ceremony for the joint venture yesterday, Sogo Co chairman Hiroo Mizushima said the store was in an area bound to become an important financial centre, providing a large consumer base and a big market for the retail and department store business.
Junefield (Holdings) general manager Ng Chung-bun said Beijing had a population of about 12 million and since people had begun five-day work-weeks their 'increased leisure time and disposal income' and their 'desire to consume means a hugh potential consumer market'.
He said further joint ventures with Sogo were expected.