- The company will sell land for a total price of approximately SAR 230.5 million
- The sale is part of the company’s board-approved program for the sale of non-core land assets with an estimated market value north of SAR 2 billion.
Riyadh, Saudi Arabia: The Board of Directors of Arabian Centers Company, the largest owner, operator and developer of shopping centers and resorts in Saudi Arabia, has approved a program to sell an identified portfolio of unowned land assets. essential. The total book value is approximately SAR 1.2 billion, with an estimated market valuation of over SAR 2 billion.
The first sale of this portfolio has also been agreed, a 17,732.95 sqm asset in the Olaya district of Riyadh is being sold for SAR 13,000 per sqm, with a final price of around SAR 230.5 million, a total profit of approximately SAR 75.5 million. The transaction will be reflected in Arabian Centres’ financial results for the second quarter of its fiscal year 2023.
Alison Rehill-Erguven, CEO of Arabian Centres, said: “This is a positive step moving forward with board approval for this strategic commitment to sell non-core land assets. . Proceeds from the sales program will contribute to our growth priorities, including plans already underway to add over 600,000 sqm of state-of-the-art lifestyle destinations to our portfolio over the next four years.”
Arabian Centers has identified a portfolio of non-core land assets for sale, following studies indicating that these spaces were best suited for residential or office developments and did not support Arabian Centres’ strategic priorities of developing premier lifestyle destinations. The sales will further strengthen the company’s financial position and bolster its future growth plans.
About Arab Centers
Arabian Centers is the leading owner, operator and developer of contemporary lifestyle centers in Saudi Arabia. Founded in 2002, the company offers its customers a full range of high quality living centers with international standards, located in the most attractive areas of the country to meet all shopping needs and market requirements.
The company currently owns, operates and manages 21 shopping centers and complexes, with over 4,300 stores, strategically located in 10 cities across the Kingdom. With a total GLA of nearly 1.34 million square meters, the company’s malls offer Saudi shoppers their preferred access point to the full range of international, regional and local retail brands.