Arabian Centres Co. Announces Partnership with National Housing Co. to Develop and Operate new Mall within Murcia Residential Project in Riyadh
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| Announcement Detail | Arabian Centers Company (“ACC” or “the Company”) is pleased to announce that on Saturday 18 June 2022 it has signed an agreement with the National Housing Company (“NHC”), the largest enabler and developer within the Real Estate system, to establish a company for the purpose of developing and operating an integrated mall on a land area of approximately 180,000 square meters within "Murcia" residential project located north of Riyadh. |
The two parties agreed to establish the company ("the Project Company") with a capital of SAR 130 million, to be paid up equally by both parties, and for a term of 28 Gregorian years starting from the agreement’s effective date. Through the Project Company, the land will be leased from NHC for the purpose of developing the mall, with total lease amounting to approximately SAR 340 million, that will be paid in annual payments.
ACC, as the developing partner, plans to start the development works during the second half of 2022 after approving the designs of the mall, which will be a hybrid mall that includes both closed and open areas with greenery and water features. The mall will have 45,000 square meters of GLA that will be distributed innovatively to provide a comprehensive and distinctive experience for its visitors. It 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.
The development cost of the mall is estimated at SAR 260 million, where ACC will finance its share of it through its internal resources, while it is expected that the mall’s revenues will exceed SAR 50 million annually at its stabilization. The financial impact of this partnership is expected to appear on ACC’s financial statements starting from the second fiscal quarter ending on 30 September 2022. Noting that there are no related parties in this agreement.
ACC expresses its pride in this partnership with NHC, considered to be the largest enabler and developer within the real estate system and working to enrich the real estate market with quality projects. The mall will be a distinctive addition to the Company's portfolio of commercial malls due to its strategic location north of Riyadh, specifically within the “Murcia” residential project.
"Murcia" project, located north of Riyadh, is one of a series of quality residential projects developed by NHC, encompassing an area of 2.7 million square meters. The project brings together more than 5,000 homes and 570 apartments, being developed in a modern style that provides an integrated environment, bringing services and amenities together in one space to create a high quality of life for its residents.
Attached some of the signing ceremony and mall’s images.
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