Arabian Centres Co. is one of the biggest retail real estate developers in the Kingdom. It wants to sell those land that it sees as not fitting in with the concept of lifestyle destinations. Image Credit: Supplied

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.