| Element List | Explanation |
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| Announcement Detail | Arabian Centers Company (“ACC” or “the Company”) announces that it signed, on Thursday 28 January 2021, an agreement with "Quara Finance Company" to support and finance Small and Medium Enterprises (SMEs) who run businesses in ACC centers. |
This step by ACC in cooperation with Quara Finance Company came to achieve the following objectives:
1) Facilitating for ACC’s tenants from the SMEs segment to obtain credit facilities, under the supervision of “Kafalah SME Loan Guarantee Program”, that have a set of advantages that satisfy their business needs, and among them is granting these SME businesses an access to financing with easy and simple procedures, shorter credit study period, and lower financing costs.
2) Reducing the level of receivables within the Company’s balance sheet during the short and medium term, through settling ACC's dues by these SMEs.
3) Support the occupancy rates within the Company's shopping centers, as this agreement will provide an exclusive financing for the targeted SMEs, which occupy around 45% of ACC’s GLA, to support the cost of rents and working capital during high seasons, and to support capital expansions, which will in turn contribute to raising the capital management efficiency of these SMEs and then expanding their businesses.
Commenting on this, the CEO of Arabian Centers Mr. Faisal bin Abdullah Al-Jedaie, said “I value the long experience provided by Quara Finance in the field of financial solutions for the SMEs segment, which contributed to the development of a flexible agreement capable of supporting the continuity of businesses within ACC's shopping centers, where it provides liquidity to finance rents and or occupancy costs for those SMEs”, he also noted “this agreement targets more than 500 SMEs located in 21 shopping centers owned and managed by Arabian Centers in various cities in the Kingdom, and this agreement aims also to improve the financial position of ACC, increasing the occupancy rates in its shopping centres, as well as in securing the Company's future expansion plans, all of which will contribute in making Arabian Centres more attractive to its existing and prospective tenants”.
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