Gome announced yesterday that one of its subsidiaries had signed a lease on a 15,400 square meter Beijing location currently occupied by Ikea, beating out Best Buy, China Business News reports. The Chinese electronics retailer, through its subsidiary Pengrun Electronics, will pay 20 million yuan (US$2.47 million) for the property, less than what Ikea currently pays, and will move in after Ikea vacates in April. Such a low rent has surprised observers, especially since Best Buy was reportedly prepared to pay up to 80 million yuan a year for the location, off the third ring road in Madian. A source with the property company said that more than 30 companies had expressed interest in the building, while Gome had not initially participated since it already occupies a building directly across the road. Competitors Suning, Dazhong, and Yongle, along with Best Buy, tendered bids, with Best Buy's 80 million yuan offer in September bringing it into close talks with the landlords.Pengrun was eventually selected over Best Buy because of payment methods, a fifteen year lease, and the reputation of its parent company. Best Buy announced in December that it would establish a retail presence in China within 12 months.Gome: 0593.HKLink: http://dycj.ynet.com/article.jsp?oid=7339518