Saudi Arabia’s Arabian Centres to net SR2b from ‘non-core’ land sales
Arabian Centres Co. has already made the first deal for its non-core land disposal
Dubai: Saudi Arabia’s Arabian Centres Company plans to net more than SR2 billion through selling part of its land holdings deemed as ‘non-core’. The company is one of the biggest commercial and retail property developers in the Kingdom.
The total book value is around SR1.2 billion of this ‘non-core landbank’, with a market valuation estimated at more than SR2 billion.
The first sale from this portfolio has also been agreed, a 17,732.95 square metre asset in the Olaya district of Riyadh being sold for SR13,000 per square metre, and with a final price of SR230.5 million – which is a SR75.5 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 of 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 will contribute to our growth priorities, including plans already underway to add more than 600,000 square metre of state-of-the-art lifestyle destinations to our portfolio in the upcoming four years”
Arabian Centres identified the 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.