Arabian Centres in deals to develop key malls
01 August 2022
Arabian Centres Company (ACC), a leading developer of lifestyle shopping centres in Saudi Arabia, has signed a lease agreement for the development of Jawharat Al-Khobar shopping mall 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 Al Khobar, Jawharat Al Khobar will be the sixth addition to the ACC malls’ portfolio in the 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.
The mall will spread over between 130,000 to 150,000 sq m of gross land area. Space at this development will be allocated for mixed-use purposes (hotel and offices) to be connected to the mall at a later stage, said ACC in its filing.
Jawharat Al-Khobar Mall will be the third flagship lifestyle destination in ACC’s malls portfolio, alongside Jawharat Al-Riyadh Mall and Jawharat Jeddah Mall (both currently under development), it stated.Once fully operational, it is estimated that the mall will generate annual revenues of between SR290 and SR330 million.
Meanwhile, earlier last month Arabian Centres signed an agreement with the kingdom’s National Housing Company for the development of a full-service commercial mall within its landmark Murcia project, located in the north of Riyadh.
According to the developer, the total cost of the project is SR600 million, of which SR260 million will be set aside for building development costs, while the rest will be for leasing of the land.
A first of its kind in the kingdom’s real estate development sector, the Murcia project is a part of a series of quality housing projects being developed by National Housing Company in Riyadh. Spread over a 2.7-million-sq-m area, the project boasts more than 5,000 residential units, including 570 apartments that offers residents a high quality of life.
The new mall will cover an area of approximately 180,000 sq m and house 150 outlets, including retail stores, restaurants, cinemas and entertainment facilities and more than 3,500 parking spaces.
The Saudi mall developer plans to begin the construction work during the second half after the structure’s design gets approved.
A first-of-its-kind project, the hybrid mall will include both closed and open spaces, green spaces and water fountains to provide a complete lifestyle destination of the residents of the Murcia development. The retail destination will boast 45,000 sq m GLA to provide a comprehensive and distinctive experience for its visitors.
It is expected to open in the first half of 2025.
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