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Saudi mall developer Arabian Centres Company (ACC) has signed an agreement with the state-owned National Housing Company (NHC) to develop and operate an integrated mall within the Murcia residential project in north of Riyadh.
ACC said in a stock exchange statement that the two parties have agreed to establish an equally owned project company with a paid-up capital of 130 million Saudi riyals ($35 million), which will develop and operate the project for a 25-year period.
NHC would lease approximately 180,000 square metres (sqm) of land in Murcia to the project company for a total leasing fee of approximately 340 million riyals ($91 million), which would be paid in annual payments, the statement said.
ACC plans to start the development works during the second half of 2022 after approving the designs of the mall, which will offer total Gross Leasing Area of 45,000 sqm which will include 150 outlets, including retail stores, restaurants, cinemas and entertainment according to the statement.
The mall is expected to open during the first half of 2025, the statement said.
In a separate press release, ACC said the total cost of the project is 600 million riyals ($160 million) of which 260 million ($69 million) is the development cost. It said the mall would host more than 3,500 parking spaces.
The Murcia project, spread over an area of 2.7 million sqm, forms part of Saudi citizens housing programme being implemented by NHC in the country, and comprises of 5,000 houses and 570 apartments.
(Writing by SA Kader; Editing by Anoop Menon)
