950805

Japan firm to

sell Singapore

shopping centre

TOKYO: Japanese department store chain Sogo Co. planned to sell a fashionable shopping centre in downtown Singapore, Japanese media reports said on Saturday.

Nihon Keizai Shimbun, Japan's leading economic journal, and Jiji and Kyodo news agencies said Sogo planned to sell "The Paragon" on Orchard Road if a bidder was willing to pay at least 52 billion yen ($571 million). About 20 firms had expressed interest, Kyodo said.

Troubled by a 1.4 trillion yen ($15.3 billion) debt, Sogo was selling real estate holdings and cutting its workforce as part of a three-year restructure programme.

Sogo has also suffered from damage to its key store in Kobe, which was hit by an earthquake last January, and overall weak consumer spending.-Reuter