Arabian Centres, the largest owner, developer and operator of contemporary lifestyle centres in Saudi Arabia, has announced that work is moving at a steady pace on its key retail destinations - Jawharat Al Riyadh and Jawharat Jeddah - in the kingdom. 

 

While the Riyadh project is due for launch in the first half of 2025, the Jeddah facility  is set to be operational in 2024.

 

Arabian Centres said in a bid to launch its next-generation retail experience, it brought to life two new locations - Jawharat Al-Riyadh and Jawharat Jeddah - collectively bringing more than 235,6000 sq m of GLA. 

 

Work on the Riyadh mall began in August last year and is currently approaching 15% completion. Strategically located near several key capital city landmarks, including the Diplomatic Quarter and Diriyah Gate, the mall is being built at a total investment of nearly SR1.8 billion. 

 

Given the project’s excellent location, the company’s leasing department has already received expression of interest from brands, accounting for around 70% of the approximate 148,4000 sq m leasable area. 

 

Once operational, the mall is expected to create around 7,000 jobs, it stated.

 

In parallel,  SR1.1 billion Jawharat Jeddah Mall’s construction currently stands at 14% completion, with an equally advantageous location near King Abdulaziz International Airport and the Jeddah Yacht Club, located on the Jeddah Corniche. 

 

A total of 70% of the leasable area has also already received letters of interest from potential tenants, covering an area of approximately 87.2 thousand sqm total leasable area. Once operational, the mall is expected to create some 5,000 jobs, stated the developer. 

 

Unveiling it mega plans, Arabian Centres said it had signed agreements with Riyad Capital, the investment arm of Riyad Bank, to establish two real estate investment funds worth SR6.2 billion ($1.65 billion) for these projects. 

 

As per the deal, Arabian Centres will handle the development and management in both cities, while the investment funds will secure funding for the projects. 

 

Located near the intersection of King Khalid Road with Al-Orouba Road, Jawharat Al Riyadh Mall will encompass an area of nearly 623,4000 thousand sqm with a market value of about SR2.1 billion. 

 

The fund is expected to accelerate development progress, with the mall projected to open in the first half of 2025, said a top official.

 

Managing Director of Arabian Centres, Mohamad Mourad, reiterating the company’s continued dedication to its ambitious development plans, said: "These are two truly unique concepts that Arabian Centres is bringing to the kingdom, offering fully integrated retail and leisure locations that cater to residents of Riyadh and Jeddah inclusively."

 

"We have set out an impressive growth strategy, with the inherent aim of uplifting the standard of services, products, and experiences to our customers. Simultaneously, we aim to deliver consistent added value to both our tenants that support their own growth in the country, fully supportive and in line with the objectives of Saudi Vision 2030," he noted.

 

On Jawharat Jeddah Mall, he said the SR1.2 billion project was currently under construction. Located in the Al Muhammadiyah district at the intersection of King Abdulaziz Road with Al-Salam Road, the project covers an area of 170,7000 sqm.

 

Fully immersive lifestyle destinations - Jawharat Al-Riyadh and Jawharat Jeddah Malls - will offer all-inclusive, modern experiences, bringing together luxury retail brands, a broad range of dining concepts and vast entertainment offerings, including cinemas and arcades. 

 

Riyad Capital’s CEO Sabty Al-Sabty expressed great excitement regarding the launch of the funds as well as the partnership with Arabian Centres, highlighting the important role the financial market plays in the development of the real estate sector and strengthening the relationship between the private sector and investment companies.

 

"We will oversee and provide coverage for the funds, while the units of both funds will be fully owned by Arabian Centres. It will also retain the right of management and operation of the developed malls associated with these two CMA-licensed funds, and as per the terms and conditions of the two funds. They later might be traded publicly as Real Estate Investment Traded Funds (REITs)," he stated. 

 

These malls, he stated, will be home to some of the world's leading fashion brands, with many opening their branches in the Middle East or Saudi Arabia for the first time. With both closed and open spaces, landscaped green areas, an artificial lake, and a walkway the sites will bring a truly unique visitor experience to the Kingdom. 

 

The addition of two new malls, Jawharat Al-Riyadh and Jawharat Jeddah will boost Arabian Centres’ locations to a total of 23 shopping centres, across 11 cities, further positioning it as the largest owner, developer and operator of malls and shopping centres in the Kingdom of Saudi Arabia, he added.-TradeArabia News Service