Dubai: Saudi Arabia's biggest owner-operator of retail and lifestyle destinations has struck a partnership with GIB Capital (GIBC) for Sharia-compliant real estate investment fund. It will have an initial capital of SR1 billion.
The fund will help with the Qassim land sale program and the development of U Walk Qassim mall, part of a 1 million square metre mixed-use Tijan scheme located in Buraidah, in Saudi Arabia's Qassim region.
The newly created fund will develop - and market - the surrounding lands for residential, offices and leisure purposes. It 'may' also sign partnership agreements with leading property developers for 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," said a statement.
The land sale is part of Cenomi Centers’ sale of SR2 billion in non-core assets, started in 2022 to bulk up the company’s financial position and fund a growth pipeline.
Around SR400 million is required to complete the U Walk Qassim mall project. The projected annual revenue from the mall 'once stabilized is around SR80 million'.
Regulator approval
Once the fund is given clearance by Saudi Capital Market Authority approval, GIB Capital will assume the role of fund manager to facilitate the sale of the Qassim land bank and also 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'.
Construction of the mall could resume in December and get completed in Q4-2026. Cenomi Centers will manage and operate the 60,000 square meter GLA (gross leasable area) mall, which will include over 135 retail stores.
"Cenomi Centers is maximizing the opportunities of operating in the attractive KSA market," said Alison Rehill-Erguven, CEO. "2024 will see three projects under construction including the flagship developments Jawharat Riyadh and Jawharat Jeddah, along with U Walk Qassim, ensuring we are on track to reach 2 million square meter total GLA by end of 2027.”
More to follow...
