Arabian Centres Company, a leading owner, developer and operator of retail and lifestyle destinations in Saudi Arabia 24, has executed a strategic partnership with GIB Capital, a prominent player in the financial and investment services sector to establish a closed-end shariah-compliant real estate investment fund with initial capital of SAR1 billion ($266 million).

 

The fund will facilitate the Qassim land sale programme and develop the U Walk Qassim mall, which is part of a 1 million sqm mixed-use Tijan scheme located in Buraidah, in the Qassim region of Saudi Arabia, said Arabian Centres Company in its filing to Saudi bourse Tadawul.

 

Construction of the mall is likely to resume in December and is set for completion in Q4 2026. Cenomi Centers will manage and operate the 60,000 sqm GLA U Walk Qassim on completion, which will include over 135 retail stores.

 

According to the Saudi retail pioneer, the fund will help develop and market the surrounding lands for residential, offices and leisure, aligning with its ambitious investment vision for the region. 

 

It may also sign partnership agreements with leading real estate developers for the purpose of developing lands within the masterplan. 

 

The land benefits from its geographic location at the intersection of major routes, including King Abdulaziz Road, which connects various parts of the city of Buraidah, which is attracting significant wider investment and urban development, it stated.

 

The land sale is part of Cenomi Centers’ strategic SAR2 billion non-core assets sale programme initiated in 2022 to strengthen the company’s financial position and fund its growth pipeline. 

 

Approximately SAR400 million is estimated to complete the U Walk Qassim mall development. The projected annual revenue from the mall, once stabilized, is around SAR80 million.

 

Following the establishment of the fund which is subject to Capital Market Authority approval, GIBC will assume the role of fund manager to facilitate the sale of the Qassim land and assist in securing the funds required for the U Walk Qassim development. 

 

Cenomi Centers will be the sole unit holder of the fund and will contribute to the fund with assets in-kind, along with any hard and soft costs incurred to date, said the company in its filing.-TradeArabia News Service