- Sale of 17,733 sqm of land, located in the Olaya district in Riyadh, is the first asset to be sold off as part of the programme
- Company will sell land for a total price of ~SAR230.5 million
- The sale is part of the company’s Board of Directors’ approved programme for the sale of non-core land assets with an estimated market value north of SAR 2 billion
Riyadh, Saudi Arabia. 25 October 2022: The Board of Directors of Arabian Centres Company, the largest owner, operator and developer of shopping centres and complexes in Saudi Arabia, has approved a programme to sell an identified portfolio of non-core landbank assets. The total book value is ~SAR 1.2 billion, with a market valuation estimated at more than SAR 2 billion.
The first sale from this portfolio has also been agreed, a 17,732.95 sqm asset in the Olaya district of Riyadh is being sold for SAR13,000 per sqm, with a final price of ~SAR230.5 million, a ~SAR75.5 million total profit. The transaction will be reflected in Arabian Centres’ financial results for the second quarter of its fiscal year 2023.
Alison Rehill-Erguven, CEO, Arabian Centres, said: “This is a positive step to now move forward with Board approval for this strategic commitment to sell the non-core landbank assets. The proceeds of the sale programme will contribute to our growth priorities, including plans already underway to add more than 600 thousand sqm of state-of-the-art lifestyle destinations to our portfolio in the upcoming four years”
Arabian Centres identified a portfolio of non-core landbank assets for sale, following studies that indicated these spaces were best suited for residential or office developments and did not support Arabian Centres’ strategic priorities of developing best-in-class lifestyle destinations. The sales will further strengthen the company’s financial position and reinforce its future growth plans.
Arabian Centres is the leading owner, operator and developer of contemporary lifestyle centres in Saudi Arabia. Founded in 2002, the company provides customers with a complete range of high-quality lifestyle centres up to international standards, located in the most attractive areas of the country to satisfy all shopping needs and market requirements.
The company currently owns, operates and manages 21 commercial centres and complexes, with more than 4,300 stores, located strategically throughout 10 cities in the Kingdom. With a total GLA of nearly 1.34 million square meters, the company’s malls provide Saudi shoppers with their preferred point of access to the full range of international, regional and local retail brands.
