Arabian Centres pens agreement to develop Al Khobar Mall

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Riyadh - Arabian Centres Company (ACC) has signed a lease and investment agreement at an annual lease amount of nearly SAR 51.50 million to build Jawharat Al Khobar Mall in Saudi Arabia.

Located in the north of Al Khobar city in Al Kurnaish district, the mixed-use development will span about 300,000 square metres. Meanwhile, the mall is expected to include between 130,000 square metres to 150,000 square metres of gross leasable area, according to a bourse filing.

The deal holds a 30-year duration period that can be renewed upon both entities’ approval.

The listed firm noted that the value of the contract will stand at SAR 969.77 million for the first binding 20 years.

Arabian Centres plans to initiate development works of the mall during the coming six months (6M) at a budget ranging between SAR 1 billion and 1.30 billion.

The mall is set to open in the second half (H2) of 2025 or H1-26. It is estimated that the project would generate annual revenues between SAR 290 million and SAR 330 million once established.

The agreement, which was signed and awarded on 20 July 2022, is expected to reflect positively on the listed firm’s income statements starting from July 2022, which marks the beginning of the second quarter (Q2) of fiscal year (FY) 2022/2023.

Meanwhile, the company will disburse cash dividends worth SAR 356.25 million for 475 million eligible shares for H2 of FY21/22.