Dubai: One of Saudi Arabia’s biggest retail space developers, Arabian Centres Company, is pocketing SR2 billion from the sale of non-core land bank to Adeer Real Estate. The deal is in line with the projections the former had made about the value gains from the asset disposal.
These assets had a book value of around SR1.2 billion and a market valuation of more than SR2 billion. The assets were identified by a study that showed they were best suited for residential or office space development and would ‘not support Arabian Centres’ strategic priorities of developing best-in-class lifestyle destinations’.
Alison Rehill-Erguven, CEO, Arabian Centres, said: “This is a strategically important programme for Arabian Centres, as we further align our future growth priorities with our overarching business initiatives. Adeer Real Estate is a leader in the sale of large-scale land and developments and intrinsically understands both the monetary and locational value of these assets, I am confident that this agreement will support the continued success of this programme.”
The first sale from the programme, announced last month, was for the sale of 17,733 square metres, located in the Olaya district in Riyadh.