https://arab.news/ruve7
Cenomi Centers, the owner, operator and developer of retail and lifestyle destinations in Saudi Arabia, has announced a strategic partnership with GIB Capital, a prominent player in the financial and investment services sector, to establish a closed-end Shariah-compliant real estate investment fund with an initial capital of SR1 billion ($266.2 million). The fund will facilitate the Qassim land sale program and develop the U Walk Qassim mall, which is part of a 1-million-square-meter mixed-use Tijan scheme located in Buraidah in the Qassim region of Saudi Arabia.
The fund will develop and market the surrounding lands for residential, offices and leisure purposes, aligning with its ambitious investment vision for the region. The fund will also sign partnership agreements with leading real estate developers for the purpose of developing lands within the masterplan. The land benefits from its geographic location at the intersection of major routes, including King Abdulaziz Road, which connects various parts of the city of Buraidah, which is attracting significant wider investment and urban development.
The land sale is part of Cenomi Centers’ strategic SR2 billion non-core assets sale program initiated in 2022 to strengthen the company’s financial position and fund its growth pipeline. Approximately SR400 million is estimated to complete the U Walk Qassim mall development. The projected annual revenue from the mall, once stabilized, is around SR80 million.
Following the establishment of the fund, which is subject to the Capital Market Authority’s approval, GIBC will assume the role of fund manager to facilitate the sale of the Qassim land and assist in securing the funds required for the U Walk Qassim development. Cenomi Centers will be the sole unit holder of the fund and will contribute to the fund with assets in-kind, along with any hard and soft costs incurred to date. Construction of the mall is anticipated to resume in December and complete in Q4 2026. Cenomi Centers will manage and operate the 60,000-square-meter gross leasable area of U Walk Qassim on completion, which will include over 135 retail stores.
Alison Rehill-Erguven, CEO of Cenomi Centers, said: “Partnering with GIB Capital to create a new fund to bring forward U Walk Qassim and deliver on our SR2 billion non-core asset sales program, demonstrates the company’s continued success at forming strategic financing solutions to drive our company’s future growth. Cenomi Centers is maximizing the opportunities of operating in the attractive Saudi market. The year 2024 will see three projects under construction including the flagship developments Jawharat Riyadh and Jawharat Jeddah, along with U Walk Qassim, ensuring we are on track to reach 2 million square meters of total GLA by end of 2027.”
Osamah Shaker, CEO of GIB Capital, said: “Our partnership with Cenomi Centers in the U-Walk Qassim Fund represents an important step toward achieving the company’s goals in financing its strategic projects. This fund also reflects our capabilities in providing innovative financial solutions. This investment supports sustainable growth in the Qassim region and reinforces our commitment to improving the business landscape in the Kingdom of Saudi Arabia.”