Arabian Centres Company (Cenomi Centers) has signed a strategic partnership with GIB Capital to establish a closed-ended, Shariah-compliant real estate investment fund with an initial capital of 1 billion Saudi riyals ($266.24 million).

The fund will facilitate the Qassim land sale program and develop the U Walk Qassim Mall, which is part of the one-million-square-meter mixed-use Tijan scheme in Buraidah, the company said in a statement to the Saudi stock exchange on Tuesday.

The land sale is part of Cenomi Centers’ strategic SAR 2 billion non-core assets sale programme, which was launched in 2022 to strengthen its financial position and fund its growth pipeline. 

Nearly SAR 400 million is estimated to complete the U Walk Qassim Mall development. The projected annual revenue from the mall is SAR 80 million.

Construction of the mall is anticipated to resume in December 2024 and complete in the fourth quarter of 2026. 

Cenomi Centers will manage and operate the 60,000 square metre gross leasing area completion, including over 135 retail stores.

Following the fund’s establishment, GIB Capital 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.

The fund will develop and market the surrounding land for residential, office, and leisure purposes. It may also sign partnership agreements with top real estate developers to develop lands within the masterplan.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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