Arabian Centres in deal to build new retail destination in Riyadh
RIYADH, July 14, 2022
Leading Saudi mall developer Arabian Centres said it has 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 ($160 million), of which SR260 million ($69 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 modern apartments that offers all 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 and more than 3,500 parking spaces to meet the needs of the entire community.
The agreement was signed at the Murcia interactive centre by National Housing Company CEO Engineer Mohammad bin Saleh Al -Bati and Arabian Centres Managing Director Mohamad Mourad.
As per the deal, a new company will be set up with a capital of SR130 million, to be paid up equally by both parties, stated Arabian Centres in its filing to Saudi bourse Tadawul.
The newly established company will then lease the land from NHC for the purpose of developing the mall, with a total lease amounting to SR340 million, which will be paid in annual payments, it said.
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, greenspaces 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 that will be distributed innovatively to provide a comprehensive and distinctive experience for its visitors.
The mall will include 150 shops that will host a range of international and local brands across fashion, casual dining, cinema and entertainment, as well as a hypermarket and various other services. It is expected to open during the first half of 2025.-TradeArabia News Service
