Riyadh - Mubasher: Arabian Centres Company (Cenomi Centers) and GIB Capital partnered to establish a closed-end Shariah-compliant real estate investment fund with an initial capital of SAR 1 billion.
The fund will facilitate the Qassim land sale programme and develop the U Walk Qassim mall, according to a press release.
The mall is part of a 1 million square metres (m2) mixed-use Tijan scheme located in Buraidah, in the Qassim region of Saudi Arabia.
Meanwhile, the fund is expected to sign partnership agreements with leading real estate developers in line with the masterplan.
The land sale is part of Cenomi Centers’ strategic SAR 2 billion non-core assets sale programme initiated in 2022 to strengthen the company’s financial position and fund its growth pipeline.
Approximately SAR 400 million is estimated to complete the U Walk Qassim mall development, while the projected annual revenue from the mall, once stabilised, is around SAR 80 million.
Following the establishment of the fund which is subject to Capital Market Authority approval (CMA), GIBC will assume the role of fund manager to facilitate the sale of the Qassim land and assist in securing the funds required for the U Walk Qassim development.
The Tadawul-listed company 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 is anticipated to resume in December 2024 and complete in the fourth quarter (Q4) of 2026.
Alison Rehill-Erguven, CEO of Cenomi Centers, said: “Partnering with GIB Capital to create a new fund to bring forward U Walk Qassim and deliver on our SAR 2 billion non-core asset sales programme, demonstrates the company’s continued success at forming strategic financing solutions to drive our company’s future growth.”
She added: “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 sqm [square metre] total GLA by the end of 2027.”
Osamah Shaker, CEO of GIB Capital, said: “This fund also reflects our capabilities in providing innovative financial solutions. This investment supports sustainable growth in the Qassim region and reinforces our commitment to improving the business landscape in the Kingdom of Saudi Arabia.”
