Arabian Centres in deal to develop $346m mall in Saudi city
RIYADH, July 21, 2022
Arabian Centres Company (ACC), a leading developer of lifestyle shopping centres in Saudi Arabia, has signed a lease agreement for the development of a shopping mall, Jawharat Al-Khobar being set up at an investment of around SR1 billion to SR1.3 billion ($266 million to $346 million).
To be developed on a 300,000-sq-m site in the Saudi city, Jawharat Al Khobar will be the sixth addition to the ACC malls' portfolio in Eastern Province and 30th in the kingdom. It will open its doors in early 2026, said the Saudi developer in its bourse filing.
The lease and investment agreement is for a 30-year period, which is renewable upon on the consent of both parties, it added.
According to ACC, the average annual lease amount is set at around SR51.5 million for the purpose of developing Jawharat Al-Khobar Mall and other mixed-use commercial facilities.
The land is located on Al Kurnaish beach granting it a unique view over the Arabian Gulf and the nearby landmarks in addition to its proximity to some of the nearby Gulf countries like Bahrain, Qatar, and Kuwait, it added.
The mall plans to offer between 130,000 to 150,000 sq m of gross land area for the upcoming retail destination.
Space at this development will be allocated for mixed-use purposes (hotel and offices), which will be connected to the mall at a later stage, which will add up to 30% of additional returns in the future, said ACC in its filing.
Developing lifestyle flagship destinations is one of ACC’s strategic pillars for expansion, and Jawharat Al-Khobar Mall will be the third flagship lifestyle destination as part of its malls’ portfolio, alongside Jawharat Al-Riyadh Mall and Jawharat Jeddah Mall (both currently under development), it stated.
Once fully operational, tt is estimated that the mall will generate annual revenues of between SR290 and SR330 million.-TradeArabia News Service
